Low interest rates and pandemic-driven lifestyle trends continue to boost housing demand as bond originator data shows some 61% of approved loans were made without a deposit.
“The unprecedented low cost of borrowing coupled with the major banks’ appetite to take on low or no deposit loans have created an ideal buying environment, particularly for first-time buyers” says Rhys Dyer, CEO of ooba.
“Property ownership is now more accessible to aspirant first-time buyers who previously could only afford to rent. Potentially renters may be able to buy a home at a lower monthly cost than their current rental payment,” adds Dyer.
Dyer says “The paradox of double-digit property price growth recorded for residential property amidst a global pandemic coupled with the worst global and local economic downturn since the global financial crisis of 2008 is astonishing.”
In the space of a year buyers have substantially changed their criteria for an ideal home. Initial lockdowns forced a major portion of the workforce as well as scholars and students to work or study from home. For a large proportion of the population this has become a semi-permanent or permanent arrangement. Consequently, buyers are prioritizing quality of life and new ways of working when purchasing a home.
Properties that feature separate workspaces, reliable internet connectivity and more space for families spending more time at home are in demand. Buyers are finding bigger properties at better value for money in suburbs outside of the main CBD.
“Areas that were once viewed as potential holiday home destinations are now more sought after as permanent residences as opportunities to work and study remotely while enjoying a better lifestyle have increased. Homes in sought-after areas that are competitively priced are selling relatively quickly, even at the top end,” adds Dyer.
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