The property market is still alive and well, the results of a new report by a non-major lender has revealed.
ME’s latest Property Buying Intentions Report
indicates demand for residential property may remain strong over the next 12 months despite prudential changes and tightening of lending criteria for some home buyers.
The report shows a big jump in demand for property by owner occupiers potentially offsetting falling demand by investors, while buyers continue to outnumber sellers.
According to the Report, among those actively looking to buy property in 2016 in the six months to December 2015, there was a 5 point increase to 50% in the proportion looking to buy a home to live in. This offset a 5 point fall to 33% in the proportion looking to buy an investment property over the same period.
The report also revealed that buyers continue to outnumber sellers by more than two-to-one.
ME treasurer, John Caelli, said these findings indicate property demand pressures from buyers are likely to remain strong over the next 12 months.
“While recent tightening in bank prudential regulations and lending criteria have reduced the proportion of investor buyers, overall demand for property may remain strong due to increased demand by owner occupier buyers,” he said.
“Demand expectations from buyers may also remain strong due to unmet demand from owner occupiers supported by continued low borrowing costs and recent improvements in the labour market.”
The report also found that 25% of Gen Y intends to buy an owner occupied property in the next 12 months, the most of any age group. Similarly, 8% of Gen X intends to buy an investment property in the next 12 months, the most of any age group.