Appetite for new properties strongest in NSW: Mortgage Choice survey
NSW prospective buyers have the greatest appetite for off-the-plan apartments and house and land packages, according to the latest consumer sentiment survey by Mortgage Choice.
Mortgage Choice surveyed 1,025 customers of which around 400 said they would like to buy a property in the next two years.
Of these who intend to make a purchase over this time frame, buying an existing property remains the choice of at least one in two prospective buyers (50.6%) with just over one in 10 looking to buy a newly built home and around one in twenty looking to either buy an apartment off-the-plan or buy land to build their first home.
A high proportion of prospective buyers (27.8%) remain undecided between existing and new property.
Demand for established homes is highest among prospective buyers from Victoria and WA, the survey shows and lowest in NSW and Queensland – two states where the state government is incentivising first-home buyers to build or buy new homes.
Among those looking buy, nearly one in 10 in NSW (8.9%) are looking to buy off-the-plan, the highest percentage of all the major states followed WA (7.2%), Victoria (3.6%) and Queensland (2.6%).
Around one in 20 prospective buyers in NSW and Queensland are looking to buy land to build a new house on, according to the survey.
Demand for land is weakest Victoria with just 2.4% of Victorian prospective buyers looking to buy residential land on the fringes to build their home.
This result will send further alarm bells ringing among Victorian developers following September quarter findings of the National Land Survey Program, which found that 30% of Melbourne land is being returned by builders.
Of those who intend to buy over the next two years, almost one third (30%) will be first homebuyers, 25% are looking to buy their next home and a very proprtion - 45% - will be investors.
“This investor confidence is very good news. With interest rates the lowest they have been for some time and property prices remaining subdued in parts of the country it is clear from the research that many investors feel that this presents a good buying environment in Australia,” says Mortgage Choice spokesperson Belinda Williamson.
Other key statistics to emerge from the survey include:
The Mark at Sydney's Central Park
Now, all signs point south for this market. A year ago vacancies were near zero but today they’re approaching 5%. Price growth has stopped and, according to Australian Property Monitors’ price graph, has started to dip below the red line.
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