Join our daily newsletter At The Bell to receive exclusive market insights
- Nine out of ten Australians are worried that property prices are becoming unaffordable, according to a survey from finance brokers Savvy
- Only one in ten of respondents have purchased a property during the COVID-19 pandemic, of those 37.1 per cent were driven by a concern for being left behind in the near future
- Of those looking to purchase a property at some stage, 28.6 per cent are worried if they don’t buy soon, they might be priced out of the market, but for 27.7 per cent of respondents, prices are already too high
- Of those surveyed, 26.9 per cent said they are currently experiencing mortgage stress, devoting over 30 per cent of their household income to mortgage repayments
- When asked why property has become so out of reach, 26 per cent cited foreign ownership as the reason, followed by record low interest rates at 20.3 per cent and an oversaturated investment market at 18.6 per cent
Nine out of ten Australians are worried that property prices are becoming unaffordable, according to a survey from finance brokers Savvy.
The survey polled 905 Australians about their attitudes and behaviours regarding housing affordability, with over three-quarters of respondents residing in Victoria, New South Wales and Queensland.
Property prices are blossoming all over the country, with CoreLogic reporting a 2.8 per cent increase across the nation in March 2021.
Almost a third of respondents are “very worried” that the current housing market is out of the reach of ordinary Australians.
39.3 per cent said they “worried”, bringing the total of those concerned to almost three-quarters, or 72.2 per cent.
Only one in ten of respondents have purchased a property during the COVID-19 pandemic, of those 37.1 per cent were driven by a concern for being left behind in the near future.
Of those looking to purchase a property at some stage, 28.6 per cent are worried if they don’t buy soon, they might be priced out of the market, but for 27.7 per cent of respondents, prices are already too high.
It might just get worse for buyers struggling to afford their own home, with ANZ predicting a 17 per cent rise in property prices this year.
The Commonwealth Bank Household Spending Intentions series for March 2021 witnessed an increase in home buying intentions from Australian households, hitting a series record high.
The series, which uses transaction data and search activity, said the strength in part reflects the early declines seen at the start of COVID-19 period last year.
CBA Chief Economist Stephen Halmarick said they expect to see demand for residential property as a key source of support for the Australian economy in 2021, adding that low interest rates were contributing to this trend.
Of those surveyed, 26.9 per cent said they are currently experiencing mortgage stress, devoting over 30 per cent of their household income to mortgage repayments.
Savvy Managing Director Bill Tsouvalas says that this should be cause for concern.
“We’ve had a general feeling that the housing market is out of reach for Australians, but it seems that COVID-19 and other measures such as HomeBuilder and the First Home Buyer Deposit Scheme has still left most would-be home buyers worried if they don’t buy now, they’ll be shut out forever,” he said.
“The fact that almost a third of people are in mortgage stress is also alarming; it could be prelude to a much bigger crash,” Tsouvalas concluded.
When asked why property has become so out of reach, 26 per cent cited foreign ownership as the reason, followed by record low interest rates at 20.3 per cent and an oversaturated investment market at 18.6 per cent.
