25 January, 2016
Overall demand for residential property to remain strong over the next 12 months – full report attached
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:
ME Treasurer, John Caelli, said notwithstanding other factors, the findings indicate property demand pressures from buyers may 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.
“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.”
About the House Buying Intentions Report
ME commissioned DBM Consultants to conduct an online survey of approximately 1,500 Australians aged 18 years and older who do not work in the market research or public relations industries. The population sample was weighted according to ABS statistics on household composition, age, state and employment status to ensure that the results reflected Australian households.