Source: David McBee from Pexels.
  • Westpac research shows 35% of homeowners plan to sell in the next 5 years
  • Low interest rates and improving confidence contribute to surging house prices
  • The research also shows big changes in Australian property aspirations

As reported on The Property Tribune, low-interest rates, improved consumer sentiment, and forecasts for strong economic growth have all contributed to the surge in housing prices.

And with the Reserve Bank of Australia remaining ‘dovish’ (as opposed to ‘hawkish’) on monetary policy, the property boom looks set to continue for some time.

With increased demand running well ahead of supply, 35% of homeowners across Australia are planning to sell in the next five years according to research released yesterday from Westpac.

This uplift shows an increase of more than double the number of homeowners planning to sell prior to COVID-19 (compared to selling intentions data from last quarter).

The research included surveys of 2,086 Australians aged 18+ distributed across capital and non-capital cities between 15-22 February 2021.

“It is absolutely a seller’s market at the moment. Sales have seen a big lift over the last four months and are up over 36 percent a year ago, resulting in a significant tightening in supply with listings across the major capital cities now at a 12-year low.

“The research suggests the situation will rebalance in coming months as more sellers come onto the market, however, demand is still expected to remain strong, driving a sustained lift in prices this year and next.”

Matt Hassan, Senior Economist of Westpac

Despite this increase, the research found more than half (51%) say they’re actively holding off from listing their property straight away (strong confidence in a low-interest-rate environment likely gives homeowners the impression of a long upward trend in prices, hence waiting for even further appreciations in value).

The majority (87%) of homeowners intend to make upgrades in preparation for sale. They expect to invest around $32,000 for covering things like minor repairs (44%), fresh paint (44%), and upgrading a kitchen (19%) or bathroom (19%).

Westpac’s Managing Director of Mortgages, Anthony Hughes, said there has been a big shift in Australian property aspirations over the last 12 months.

“Home ownership preferences have evolved since the start of the pandemic, with Australians seeking more space, peace and quiet, as well as properties which offer outdoor living like backyards and balconies.

“This is fuelling buyer demand and motivating more Australians to think about selling their current property so they can purchase a new home to better meet their future needs.”

Anthony Hughes, Managing Director of Mortgages at Westpac

Homeowners anticipate their property will be listed for about five weeks, with half expecting a private sale.

You May Also Like

Melbourne property market sees mom and dad builders flock to outer suburbs for the best bang for buck

The cost of building a house in these top 20 suburbs started at $272,944 and topped out at $387,688.

Australian rental market clocks in a near-40% price growth, while wages struggle to keep up

Rents soared by almost 40% across the pandemic, while wages barely clocked in 20% growth.

Gender gap closes? Women outpace men in overall property ownership

Challenges persist for younger women in achieving homeownership, highlighting the need for targeted solutions.

Exclusive: Top five regional New South Wales housing markets revealed, the affordable alternatives to Sydney

Hotspotting has exclusively revealed to TPT New South Wales housing market’s five best regional hotspots for homebuyers and investors.

Top Articles

PropertyGuru Asia Property Awards (Australia) returns for its 7th edition, including several brand new award ...

This year's awards include several brand new categories, with entries closing 2 August 2024.

Housing crisis survival guide: How to buy your first Australian property

Three property experts give the low down on how to nab a home in this tough housing market.

Strata properties as investments: All you need to know about investing in a Perth unit

As the cost of renting approaches the cost of a mortgage, more people are investing in units to escape the rental trap.