Australians are more confident of owning a home, a new report has revealed, with buyers now facing a rare situation of subdued house price growth in some cities.
The latest Westpac Home Ownership Report released on Wednesday found 44 per cent of Australians plan to buy a new home in the next five years, up 9 percentage points since July 2023.
More Australians are also planning to buy an investment property, upsize their home, or renovate an existing dwelling, the research found.
The analysis comes amid a subdued period of house price growth in some capital city markets.
Last month, Sydney house prices were unchanged, while other markets, including Melbourne, Canberra and Hobart, had experienced a slight decline in property values, according to CoreLogic data.
However, values continued to rise at the monthly rate in excess of 1 per cent in Brisbane, Adelaide and Perth.
Westpac’s managing director of mortgages Damien MacRae said while some buyers have paused their housing plans amid the rising cost of living, many prospective homeowners remained intent on purchasing a property.
“Buyers are casting their expectations wider, willing to compromise on location and are forgoing everyday luxuries like food delivery,” Mr MacRae said.
“They are also more inclined to relocate and move to apartment living.”
The report from Westpac, which is among Australia’s largest home loan lenders, showed 56 per cent of aspiring homeowners were planning to buy with their partner, up 16 per cent from 2021, while three quarters were willing to buy somewhere they weren’t previously considering, a 9 per cent increase.
Half of those surveyed were considering ‘rent-vesting’ – where buyers rent a property that suits their needs while simultaneously maintaining an investment property – to achieve the goal of owning a home.
As the price of detached homes swelled, potential buyers were increasingly looking towards other forms of housing, the report found.
While 39 per cent of potential buyers still preferred to buy a detached home, 18 per cent opted for purchasing an apartment or unit, up from 11 per cent in 2021.
Preferences for a townhouse had doubled to 12 per cent, up from 6 per cent in 2021.
“During the pandemic we saw more buyers seeking property further from the city in pursuit of more space, however it appears buyers are willing to concede on location in order to get a foot in the door,” Mr MacRae added.
Australians aged 30-34 have experienced a significant decline in homeownership rates in recent decades. In 2021, just half of this age group owned a home, compared with 68 per cent in 1981.
Source Agencies
