First-time buyers of Australian property are being marginalised by investor demand and upgraders. According to figures from the Australian Bureau of Statistics (ABS) that go back 22 years, those trying to get on the housing ladder now make up the smallest proportion of the market on record. ABC News reported that the number of first-time buyers dipped to 12.5 per cent of all activity in September - the smallest amount noted since figures started being collected in 1991. In fact, the other low was experienced in March 2004, when 12.8 per cent market share was seen.
Conversely, investment lending jumped 5.2 per cent in September, while the number of loans to owner-occupiers increased 4.4 per cent across the board, the news portal revealed. UBS Australia's chief economist Scott Haslem believes this is down to issues of affordability. It seems that while investors and upgraders can easily meet asking prices, those trying to get on the property ladder are struggling to compete.
"Housing in Australia still remains pretty expensive, but it has become cheaper than it has been for the last ten years given the fall in interest rates and, up until recently, pretty low prices," Mr Haslem told ABC. "In contrast though, first home owners aren't seeing relative affordability, they're seeing absolute unaffordability, so I think for first home owners housing in Australia still looks pretty expensive."
Sydney is one of the most costly locations for buyers, with prices in the city rising 3.6 per cent in September 2013. Melbourne, Brisbane, Perth, Hobart and Darwin also saw increases of 1.9 per cent, 1.2 per cent, 0.2 per cent, 1.4 per cent and 0.4 per cent respectively. Conversely, Canberra and Adelaide witnessed price drops of 1.2 per cent and 0.6 per cent. However, the weighted average for the eight capital cities grew by 1.9 per cent during the third quarter of the year. This means that to the end of September, prices increased 7.9 per cent on average in Australia's capital cities since the beginning of 2013.
Article by +https://plus.google.com/113107350172679406191?rel=author on behalf of Propertyshowrooms.com
Conversely, investment lending jumped 5.2 per cent in September, while the number of loans to owner-occupiers increased 4.4 per cent across the board, the news portal revealed. UBS Australia's chief economist Scott Haslem believes this is down to issues of affordability. It seems that while investors and upgraders can easily meet asking prices, those trying to get on the property ladder are struggling to compete.
"Housing in Australia still remains pretty expensive, but it has become cheaper than it has been for the last ten years given the fall in interest rates and, up until recently, pretty low prices," Mr Haslem told ABC. "In contrast though, first home owners aren't seeing relative affordability, they're seeing absolute unaffordability, so I think for first home owners housing in Australia still looks pretty expensive."
Sydney is one of the most costly locations for buyers, with prices in the city rising 3.6 per cent in September 2013. Melbourne, Brisbane, Perth, Hobart and Darwin also saw increases of 1.9 per cent, 1.2 per cent, 0.2 per cent, 1.4 per cent and 0.4 per cent respectively. Conversely, Canberra and Adelaide witnessed price drops of 1.2 per cent and 0.6 per cent. However, the weighted average for the eight capital cities grew by 1.9 per cent during the third quarter of the year. This means that to the end of September, prices increased 7.9 per cent on average in Australia's capital cities since the beginning of 2013.
Article by +https://plus.google.com/113107350172679406191?rel=author on behalf of Propertyshowrooms.com
