Invest
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown.
Why home buyers are now more open to high-priced properties
Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown.
REA’s latest report has confirmed what real estate pundits have been saying for months, that buyers are in the market for more space, with demand for houses continuing to outpace units over the last 12 months.
In fact, the report revealed that three-bedroom dwellings have emerged as the most popular house type among buyers. In contrast, searches for one-bedroom dwellings have declined, particularly in capital cities.
During the same period, the $500,000 to $750,000 category emerged as the most popular price filter. In the sub-$750,000 range, 57 per cent of all searches came from buyers in regional areas, while 35.7 per cent came from those in capital cities.
Meanwhile, searches for sub-$500,000 properties saw a significant decline both in capital cities and regional areas.
Going further up the price ladder, properties in the $1 million-plus range accounted for 42.3 per cent of the share of searches over the past 12 months, up from 36.2 per cent in the year prior.
Properties in the $1 million to $1.5 million range saw the largest growth both in capital cities and the regions.
According to the report, apart from the desire for open spaces, buyers seeking more expensive properties are primarily buoyed by “the low cost of debt and subsequent price rises”, REA Insights economist Anne Flaherty noted.
“While enquiries are growing, the significant change seen over the past 12 months can be partly attributed to the impact of the introduction of COVID-19 restrictions during March 2020,” Ms Flaherty explained.
Enquiries for new developments have also continued to surge over the same period, with land estates outpacing apartments.
According to the report, enquiries for apartment projects increased by 115.1 per cent, while enquiries for land estates were up by as much as 262.7 per cent. In March 2021, land estates accounted for 57.6 per cent of all enquiries.
Looking ahead, Australia’s property market is expected to continue its recovery on the back of stronger demand, low rates and increased listings.
“Australia’s property market shows no signs of slowing in 2021. The low cost of debt combined with an unprecedented level of government support has seen buyer activity surge this year.
“Demand is strong, with views per listing at record highs and days on site at record lows.
“Transactions are trending upwards and will likely keep rising as more listings are brought to market over the remainder of 2021,” Ms Flaherty concluded.
RELATED ARTICLES
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
