Property's Primacy: Australians' Reliance On House Prices Revealed
A new survey confirms the importance of property to Australians.
In a study of 1500 Australian adults, 43% of respondents said they were reliant on future house prices to achieve future life / financial goals, with 10% completely reliant.
But it’s a tug-of-war as to which way we want prices to go: 38% want prices to increase while 37% want them to fall.
Where you sit largely comes down to your property ownership status: 39% of those who own the home they live in and 47% who own an investment property indicated they are ‘reliant’ on future prices, presumably increasing, while 48% of those who don’t own a property also say they are reliant, presumably wanting prices to fall.
Younger respondents indicated they are more reliant on future house prices than older: 51% of Millennials (25 to 39-year-olds) said they are reliant compared to 30% of Baby Boomers (55to 74year-olds).
Most tellingly, the survey indicates more Australians would benefit from property prices falling than rising, with only 28% indicating they’d benefit by selling if prices continued to rise compared to 47% who said they’d benefit by buying in if property prices fell.
A quarter of homeowners happy to see house prices to fall
ME home loan expert, Patrick Nolan, said he was surprised to find 37% of respondents want property prices to fall, including 24% of those who own a home and even 20% of those with an investment property, compared to 38% of who want prices to continue rising 38%.
“Traditionally Australians fall into two camps when it comes to property prices: owners, who want them to rise, and non-owners, who want them to fall.
“But with high prices disrupting the dream of homeownership and the benefits that brings, views are changing.”
“That property owners were willing to see asset values fall is a sure sign house prices had reached heights many think are unfair,” Nolan said.
When asked why they want prices to fall, the overwhelming reason given was to help address the housing affordability issue (57%), a sentiment expressed by 97% of those with property.
The bulk of those wanting house prices to continue rising are property owners: 49% of homeowners and 55% of investors.