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Confidence returns to the Australian property market
16/09/2010
The chaotic state of the economy and the topsy-turvy real estate market over the last two years has done little to dissuade us from buying property, with new data showing that 15% of all Australians plan to buy property in 2011.
The latest figures from Datamonitor confirm that Australians are as keen as ever to buy bricks and mortar, despite the threat of rising interest rates.
“Consumer confidence in the Australian property market has rebounded after the tremulous last year,” says Petter Ingemarsson, Datamonitor’s financial services analyst.
According to Datamonitor, 8% of Australians intend to purchase an investment property in the next 12 months.
A further 7% plan to purchase their first home – despite record-low affordability due to rising property prices and increasing interest rates.
16/09/2010
The chaotic state of the economy and the topsy-turvy real estate market over the last two years has done little to dissuade us from buying property, with new data showing that 15% of all Australians plan to buy property in 2011.
The latest figures from Datamonitor confirm that Australians are as keen as ever to buy bricks and mortar, despite the threat of rising interest rates.
“Consumer confidence in the Australian property market has rebounded after the tremulous last year,” says Petter Ingemarsson, Datamonitor’s financial services analyst.
According to Datamonitor, 8% of Australians intend to purchase an investment property in the next 12 months.
A further 7% plan to purchase their first home – despite record-low affordability due to rising property prices and increasing interest rates.
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“The prospect of capital gains drives property investor intentions,” Ingemarsson explains, “with rental income a secondary consideration.”
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Whether you’re thinking of investing or you want to your own home, there’s never been a better time to buy that right now, according to property expert Peter Koulizos.
I'm always amused by the statistics these surveys produce. ING run (used to run?) a similar one about FHB intentions. The sample is clearly representative of a select group not the whole population. The truth is that only ~5% of homes are sold in any given year on average. The peak of recent activity was 2003 when ~7% were sold. I'm guessing a large proportion of people wouldn't be interested in answering a survey because they're not interested in property purchase.
The actual figures will be more like 1% buy their first home, 1% to 2% buy an investment property and 2% to 3% sell and move. The idea that "15% of all Australians" will buy a first home or investment property is laughable.
