NAB’s Quarterly Residential Property Survey for the March quarter of 2024 has revealed that buying activity from owner-occupiers (excluding first home buyers) dominated established housing markets during the quarter.
According to the survey, the overall market share of owner-occupiers rose to 44.1 per cent, up from 44.3 per cent on the previous quarter, sitting above the survey average of 43.5 per cent.
Across the states, owner-occupiers also accounted for the lion’s share of established home sales, led by Victoria at 49.6 per cent and South Australia at 48.9 per cent, with the lowest market share being recorded in NSW at 38.1 per cent.
Comparatively, the overall share of first home buyers (FHBs) fell in established housing markets to 33.2 per cent from 34.2 per cent quarter on quarter, remaining above the average of 31.8 per cent.
FHB owner-occupier share fell to 2.52 per cent from 26.3 per cent, while the investor cohort remained relatively unchanged in the March quarter with a slight rise of 0.1 per cent (8 per cent from 7.9 per cent).
NSW recorded the highest share of sales to FHBs overall at 36.4 per cent, followed by South Australia and Victoria at 34.7 per cent and 33.8 per cent, respectively.
The overall market share of all FHB in new property markets also declined to 29.3 per cent in 3Q24, representing the lowest market share for this segment since 2016. This was reflected by a decline in the market share of FHB owner-occupiers to 18.4 per cent (down from 21.5 per cent) in new housing markets.
Meanwhile, the total share of local investors in Australian housing markets rose to 17.1 per cent during the March quarter of 2024, up from 16.8 per cent; however, it sat below the survey average of 18.8 per cent.
Respondents to NAB’s survey stated that they expected the share of buyers in established housing markets to continue to rise over the next 12 months in all buyer segments.
Constraints for the segment
According to NAB’s survey, rising interest rates are still considered the biggest constraint for buyers of existing property on a national level during the quarter; however, this weighed “a little less heavily” on buyers as interest rates have remained on hold since November 2023.
Furthermore, lack of stock was the second-biggest hurdle for buyers overall, viewed as more problematic specifically for buyers in Western Australia, South Australia, and Queensland.
Additionally, access to credit posed a challenge to buyers in the established housing market segment.
This weighed the heaviest on buyers in NSW, Victoria, and South Australia where it was considered a “significant” constraint, whereas it was only “somewhat significant” among buyers in other states.
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