Invest
Record rise tipped to hurt first home buyers
Record-low interest rates are tipped to help grow the property market by double digits in 2021, but those who are trying to get into the market could face struggles, new research has revealed.
Record rise tipped to hurt first home buyers
Record-low interest rates are tipped to help grow the property market by double digits in 2021, but those who are trying to get into the market could face struggles, new research has revealed.

Buyers Buyer co-founder Pete Wargent said the housing market is reaching new highs, which will consequently see dwellings become less affordable.
“While internal migration to regional areas somewhat mitigates the problem, there is still a major undersupply of family-suitable properties in popular areas with proximity to the major employment hubs,” he said.
Mr Wargent pointed out that opportunities could emerge in the apartment market, which is not experiencing the same growth as the housing market.
“High-rise apartments are not considered to be a fully substitutable product to houses and townhouses, and therefore will not materially impact the demand for houses. Housing affordability is likely to remain a chronic issue particularly in Greater Sydney, Greater Melbourne as well as popular areas in South-East Queensland.”

Archistar’s chief economist, Dr Andrew Wilson, said the toughest ask for first home buyers is to confront rising house prices because, as first-time buyers, they do not have a trade-in to bring to the market.
“A number of incentives for first home buyers will either cease or diminish, such as the first home buyer deposit scheme, which will finish in the first half of this year,” the economist explained.
As such, the COVID-19 economic downturn actually favoured new market entrants, with governments seeking to stimulate the economy by pumping more money into housing.
“First home buyers are active during times of economic stress because of low interest rates that improve affordability,” Dr Wilson said.
However, while first-time buyers could struggle, sellers are tipped to be the big winners as low interest rates, low supply and heightened demand flips the market from a buyers to a sellers market.
“It’s not uncommon to see lower stock levels over the summer break, but this year has been something else. Even as new listings have begun to pick up, supply is being comfortably outstripped by demand, and the market overall is very tight,” Mr Wargent said.
He said it is now projected that both Sydney and Melbourne will deliver capital growth in the range of 8-12 per cent in 2021.
Many areas are also likely to deliver double-digit growth over the calendar year. In particular, houses with a high land value component and scarcity value are likely to enjoy very strong demand and capital growth, both in the short and long term.
About the author

About the author


Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more