Property owner sentiment steadily rising

According to ME Bank’s Quarterly Property Sentiment Report for October 2019, property owner’s sentiment towards market conditions had improved by 9 percentage points compared with the previous quarter.

The survey was conducted on 1,000 adults across Australia who own property, and separated respondents based on their place within the property market (i.e. owner-occupiers, investors or first home buyers). 

The report states that 47 per cent of Australians in the property market are expecting to see the value of their property increase over the next 12 months, with this figure up from 38 per cent in July and 32 per cent in April.

As it stands, 13 per cent of home owners expect to see a fall in the value of their property, down from 17 per cent in July and 28 per cent in April.

After at least six months of taking a “wait and see” approach to the market, the survey found that home owners are increasingly more willing to get back into the property market, with 33 per cent intending to buy (up 2 percentage points over the quarter) and 15 per cent intending to sell (up 4 percentage points).

These trends are emphasised by relevant age groups, with 53 per cent of 25 to 39-year-olds intending to buy property (compared with 44 per cent the previous quarter), and 18 per cent of 40 to 54-year-olds gearing up to sell (compared with 11 per cent previously).

Investors remain the most active in the market, although their interest did dip by 5 percentage points from last quarter.

Overall, 66 per cent of investors currently intend to buy and/or sell, as do 48 per cent of first home buyers and 45 per cent of owner-occupiers.

Despite the fact that supply in the market continues to be down year-on-year, 50 per cent of respondents believe there is enough choice available to buyers in the market, while 23 per cent stated they were unsure.

However, it appears that available stock and the matter of choice is dependent on the local market, as answers varied greatly depending on location.

Residents in the Northern Territory believe there is not enough choice in the market for buyers, with 75 per cent stating as such, and Tasmanian residents are torn on whether or not the market offers enough choice for buyers, with 44 per cent stating that it does, and another 44 per cent stating that it does not.

When it comes to personal finances, recent upwards shifts in the property market has changed property owners’ sense of wealth, shifting from a net negative 4 per cent in July, to net positive 10 per cent in October.

Further, respondents’ financial confidence has improved from net negative 5 per cent in July to net positive 6 per cent in October, and sentiment around their debt situation improved from net positive 4 per cent to net positive 9 per cent.

However, in light of improved sentiment towards property values, 89 per cent of respondents noted that housing affordability continues to be a problem in Australia for those not yet on the property ladder.

[Related: Property values to hit record highs by April]

Hannah Dowling is a journalist for mortgage business, the leading source of news, opinion and strategy for professionals working in the mortgage industry.

Prior to joining the team at Mortgage Business, Hannah worked as a content producer for a podcast catering to property investors. She also spent 6 years working in the real estate sector at a local agency. 

Hannah graduated from Macquarie University with a Bachelor of Media and Journalism. 

You can email Hannah at: This email address is being protected from spambots. You need JavaScript enabled to view it.