realestateview.com.au housing sentiment report

Transcription

1 realestateview.com.au housing sentiment report MARCH 2014

2 ABOUT THE HOUSING sentiment report Commissioned by realestateview.com.au in March 2014, a survey was conducted with 1,216 Australians via an online questionnaire. Of the respondents that specified locations, the breakdown of locations were as follows: VIC (66%), NSW (19%), QLD (4%), SA (3%), WA (4%), TAS (3.5%) and NT (0.5%). The survey asked buyers currently in the market for property to respond anonymously to 25 questions, with another 18 questions answered by current renters and those searching for a rental property. The survey sought to obtain a comparative overview of current sentiment on the housing market including pet peeves, lifestyle preferences (where people are looking to buy or rent, what type of properties and suburb features they re looking for) and affordability concerns (the biggest concerns, what they can afford, the tactics they re using to save and invest in property). The report also includes quantitative data from realestateview.com.au and propertydata.com.au such as most searched suburbs, median house prices, auction clearance rates and days on market. Page 2

3 RENTER SENTIMENT Page 3

4 DEMOGRAPHICS OF RENTERS 5.2% 3.8% KEY 12.2% 10.8% 27.6% Renting alone (singles and single parents) Renting with a partner (including two-parent families) Renting with a friend Renting as part of a share house 37.8% At home with parents looking to rent alone At home with parents looking to rent with a partner Page 4

5 Length of time renters have been in the RENTAL market KEY 32.7% 29.9% <1 year 1 <2 years 2 <3 years 3 <4 years 4 <5 years 6.7% 6.3% 9.8% 14.6% 5+ years Page 5

6 Reasons for renting without intent to buy I can t afford a deposit I can t afford mortgage payments Difficulty obtaining finance I think the market is overpriced I don t want to be tied down to one place because of a mortgage It s cheaper to rent I can t afford to buy in the area I want to live in I have already bought an investment property 49.8% 32.5% 18.9% 25.7% 16.5% 22.5% 28.7% 12.1% 0 10% 20% 30% 40% 50% 49.8% can t afford a deposit 32.5% don t believe they can afford mortgage payments 28.7% can t afford to buy in the area they want to live in 25.7% think the market is overpriced 22.5% think it s cheaper to rent 18.9% have difficulty obtaining finance 16.5% don t want to be tied to one place because of a mortgage 12.1% have already bought an investment property. Of those who bought an investment property, the reasons they are renting: > 44.4% say it s because they make more money this way (i.e. rental income covers all / most of their mortgage payments, negative gearing benefits etc) > 38.8% say it s because they can t afford to buy in the area they want to live in > 11.1% say it s because they don t want to be tied down to a mortgage > 11.1% say it s because they like investing in growth areas / hot spots outside of their local area / city / state. Page 6

7 The pet peeves of renters Not being able to make changes to the property Property manager unresponsive to issues Pet rules / restrictions 59.7% 44.1% 37.8% 60% of renters cite not being able to make changes to the property (e.g. putting nails in the wall, installing a TV wall mount, extra phone line / Foxtel, etc) as a major pet peeve. They re also annoyed by property managers who aren t responsive to issues (44%), pet rules / restrictions (38%), paying to fix things themselves because it s quicker (30%) and last minute inspections (23%). Paying to fix things myself because it s quicker 30.3% Last minute inspections 22.7% Lack of flexibility in the contract 14.7% Other 14.3% 0 10% 20% 30% 40% 50% 60% Page 7

8 Biggest hurdles for renting property Competition Getting to opens / inconvenient open times 58.5% 55.9% The top 3 difficulties for finding a rental property are competition (58.5%) cited this as a barrier, getting to opens / inconvenient open times (55.9%) and long-winded application processes (34.9%). Long-winded application process 34.9% Reference checks 17% Income test 16.6% 0 10% 20% 30% 40% 50% 60% Page 8

9 Most searched suburbs to rent (past six months) The top 20 most searched suburbs to rent in Victoria over the last six months were predominantly inner-city and affluent mid-suburban areas including Richmond, South Yarra and Hawthorn. The great Australian dream of home ownership is fading for a significant percentage of the population either because they feel unable to obtain and manage a mortgage, or because it s too expensive to buy into the area they rent in. Petra Sprekos general manager, realestateview.com.au Suburb 2013 Median rent (2-bed unit) St Kilda 3182 $450 $668 Richmond 3121 $500 $700 South Yarra 3141 $490 $800 Brunswick 3056 $399 $583 Prahran 3181 $428 $680 Elwood 3184 $410 $753 Carlton 3053 $466 $680 Hawthorn 3122 $395 $677 Fitzroy 3065 $560 $740 Northcote 3070 $420 $600 North Melbourne 3051 $452 $650 South Melbourne 3205 $510 $753 Brighton 3186 $480 $799 St Kilda East 3183 $385 $602 Port Melbourne 3207 $570 $836 Shepparton 3630 $210 $270 Fitzroy North 3068 $450 $682 Preston 3072 $353 $421 Malvern 3144 $385 $ Median rent (3-bed house) Source: REIV data March 2014 Page 9

10 Factors influencing a renter s decision to live in a suburb Safety is by far the most important consideration for renters (53.9% ranked this as always important), followed by public transport access (44.2% ranked this as always important). Interestingly, cafes and restaurants were last on the list (10% ranked this as always important). How safe you feel in the neighbourhood (53.9% ranked this as always important) 1 6 Public transport access (44.2% ranked this as always important) 2 7 Shops (34.7% ranked this as always important) Distance from work (34% ranked this as always important) Close to family / friends (21.7% ranked this as always important) 9 10 Distance from city centre (21% ranked this as always important) Being in a school zone (17.5% ranked this as always important) Parks and communal spaces (15.9% ranked this as always important) Number of neighbours (13.9% ranked this as always important) Cafes and restaurants (10% ranked this as always important) Page 10

11 Top 10 most sought after property features renters vs buyers Has the Masterchef phenomenon permeated our housing tastes? 26.5% of renters rank a big or good quality kitchen as a necessity when looking to rent, and one fifth of buyers (19.8%) see a big kitchen as an important feature. Taking a closer look, buyers and renters look for different things when it comes to property: RENTERS Appropriate size of property (27.4%) Big or good quality kitchen (26.5%) Air con / heating (26.1%) Garage / car space (19.7%) Outdoor area (19.1%) Good floor plan (13.2%) BUYERS Big or good quality kitchen (19.8%) Garage / car space (18.2%) Appropriate size of property (15.8%) Second toilet (15.6%) Good floor plan (14%) Air con / heating (13.8%) 7 Separate laundry (12.8%) 7 Second bathroom (13.5%) 8 Age (11.7%) 8 Outdoor area (13.3%) 9 Storage (11.2%) 9 Storage (9.1%) 10 Second bathroom (10.8%) 10 Separate laundry (8.3%) Page 11

12 BUYER SENTIMENT Page 12

13 Most searched suburbs to BUY (past six months) Suburb 2013 DAYS ON MARKET 2013 AUCTION CLEARANCE RATE 2013 MEDIAN HOUSE PRICE South Yarra % $1,370,000 Hawthorn % $1,562,500 Richmond % $877,000 Brighton % $1,793,000 Kew % $1,585,000 Malvern % $1,520,000 Camberwell % $1,452,500 Prahran % $980,000 Elwood % $1,300,000 St Kilda % $918,500 Glen Iris % $1,332,500 Northcote % $875,000 Brunswick % $769,000 Ballarat % $295,000 Malvern East % $1,160,000 Hawthorn East % $1,490,000 Armadale % $1,550,000 Hampton % $1,265,000 Source: REIV data March 2014 Page 13

14 Top 10 most sought after property features VIC vs NSW home buyers Buyers in Australia s two most populated states want different things from a home. More Victorians prioritise a large or good quality kitchen (20.7%) whereas NSW buyers think a home with a second toilet is more important (21.1%) VIC Big or good quality kitchen 20.7% Garage / car space 18.9% Appropriate size of property 16.2% Second toilet 15.1% Good floor plan 15.9% Air con / heating 15.1% Outdoor area 14% Second bathroom 12.5% Storage 9.4% Separate laundry 8.3% 10 NSW Second toilet 21.1% Big or good quality kitchen 18.4% Second bathroom 17.1% Garage / car space 17.1% Appropriate size of property 15.8% Good floor plan 11.9% Outdoor area 11.8% Storage 9.2% Air con / heating 7.9% Separate laundry 7.9% Page 14

15 Greatest hurdles to purchasing a property Majority of respondents list rising property prices (49%) and being priced out of the market (48%) as the greatest barrier to buying a property. Interestingly, Victorians aren t as worried about job losses despite having the highest unemployment rate only a quarter of Victorians are troubled compared to the national statistic of 28%. Obtaining finance is also less of a worry for Victorians (17%) than NSW (26%). In contrast 21% of buyers nationally list obtaining finance as a hurdle to buying. Greatest hurdles to purchasing a property % ranking difficult or very difficult National VIC NSW Rising property prices 49% 44.5% 48.6% Being priced out of the market/outbid by other parties 48% 43.8% 41.7% Selling my home I can't get the price I want 46% 43.8% 41.7% Changes to first home owner grant 41% 43.8% 41.7% Stamp duty costs 40.9% 35.6% 44.7% Worrying about the state of the market 33% 30% 36% Saving for a deposit 32% 25.4% 41.9% Job security 28% 22.9% 28.4% Obtaining finance 21% 16.9% 25.7% Page 15

16 Length of time buyers have been looking to purchase Nationally, the majority of buyers (73%) have entered the market in the last six months (52% in the last three months, 21% in the last 3-6 months) confirming a resurgence in buyer confidence despite concerns over affordability. This is higher for first-home buyers at 78.2% (54.6% in the last three months, 23.6% in the last 3-6 months) showing first home buyers are returning to the market, contrary to recent findings from home loans data. Length of time buyers have been looking to purchase National VIC NSW In the market for the last three months 52% 48% 48% In the market for the last 3-6 months 21% 24.5% 18.4% In the market for the last 7-12 months 9.5% 12.1% 11.8% In the market for 1-2 years 6.6% 8.7% 11.8% In the market for 2-3 years 2.5% 1.9% 2.6% In the market for 3+ years 8.4% 4.2% 15.8% Page 16

17 Most popular savings methods/tactics to enter the property market Many buyers are relying on the bank of Mum and Dad to enter the property market, nearly one fifth (19.4%) rely on their parents either through borrowing money, living with them or using them as a parental guarantor. Victorians are more reliant on Mum and Dad (23.7%) than their NSW counterparts (15.8%). First home buyers rely heavily on their parents to enter the market; in fact, nearly half (42.6%) rely on their Mum and Dad. Popular savings methods/tactics Saving through a regular savings account Selling my home and using the profit/funds from the sale Renting and buying an investment property Borrowing money from parents to pay a deposit National VIC NSW 37.3% 43.2% 31.6% 59.0% 36.5% 35% 31.6% 3.7% 8.9% 8.2% 15.8% 11.8% 7.4% 9.7% 5.3% 14.0% Living with parents and investing 6.1% 6.6% 7.9% 13.2% Using a parental guarantor to help secure a loan 5.9% 7.4% 2.6% 15.4% First Home Buyers Saving through a first home saver account Buying a new home to maximise changes to first home buyer grants 5.9% 6.2% 4% 14.0% 5.6% 5.5% 6.6% 13.2% Buying with friends 4.4% 4.7% 4% 5.15% Page 17

18 Home deposits We ve become a nation of savers, with nearly 40% of buyers planning to have more than a 20% deposit. A fifth of respondents (21.8%) plan to have a deposit between 11-20% Home deposits National VIC NSW Planning to have a deposit of more than 20% when they buy First Home Buyers 38% 36.9% 35.1% 21.9% First home buyers are struggling to save a sizeable deposit. The majority of first home buyers (41.6%) will save a deposit of between 5-10%. Only 21.9% plan to have a deposit greater than 20%. Only 24.9% will have a deposit between 11-20%, and 11.7% will save a deposit of less than 5%. Planning to have a deposit of 5-10% when they buy Planning to have a deposit between 11-20% when they buy Planning to have a deposit of less than 5% when they buy 29.9% 32.7% 28.4% 41.6% 21.8% 21.2% 27% 24.9% 10% 9.2% 9.5% 11.7% Page 18

19 Factors buyers would not compromise to buy in their ideal area Space is a priority for buyers. 49.4% would not compromise on the size of a property in order to live in their ideal areas. Outdoor space and access to public transport are also nonnegotiables for buyers. However, both Victorians and NSW buyers viewed these factors as less of a priority, ranking below the national average. Being in a school zone was much more important for Victorians (44.2%) and NSW residents (36.8%) than the national average (19.5%). Factors buyers would not compromise to buy in their ideal area NATIONAL VIC NSW Size of property 49.4% 35.9% 43.4% Outdoor space/garden 44.2% 32.1% 21.1% Access to public transport 41.8% 29.4% 31.6% Proximity to shops, cafes and restaurants 34.8% 28.7% 21.2% Distance from work 30.4% 33.6% 27.7% Proximity to friends and family 28.1% 27.6% 35.5% Proximity to CBD 27.5% 31.7% 38.2% Access to parks and communal spaces 22.3% 28.3% 23.7% Being in a school zone 19.5% 44.2% 36.8% Page 19

20 Media inquiries Anna Kenneally / Mia Cochrane at Keep Left anna@keepleft.com.au / mia@keepleft.com.au (03) Page 20