First-time homebuyers in Australia take about 2 years to save for a deposit
First-time homebuyers can significantly speed up the process of saving the required amount for a deposit. The deposit is 20% of the value of the property. The decision is made to buy an apartment instead of a house. These are the findings of an analytical report by Domain, a company specialising in the Australian property market.
Key findings of the homebuyers analysis
The report outlines the challenges faced by homebuyers in Australia. Typical consumers are couples aged 24-35 with an average salary. The main limiting factor for this category of buyers is high house prices. At the same time, experts note improvements in mortgage lending.
The market situation is as follows:
1. The time taken to accumulate savings to buy an apartment is 20 months less than for a house. This trend can be observed in all major cities in the Australian states.
2. The gap is widest in Sydney at 2 years and 5 months. This is followed by Canberra at 2 years and 4 months.
3. In Brisbane, Adelaide and Perth, the savings period for apartments and houses has increased. The reason for this is the rapid rise in house prices. They are growing twice as fast as wages.
4. The only city where the savings period has shortened is Melbourne. As a result, Victoria has become the leading state for first-time homebuyers.
5. Sydney remains the most expensive market for homebuyers.
Darwin offers the most affordable property prices. It takes 2 years and 1 month to buy an apartment. To save a deposit for a house can take 3 years and 5 months.
Nicola Powell of Domain points out the difficulties of the local market for first-time buyers. Over the last 5 years, house prices in the region have risen by 58% and flat prices by 27%. At the same time, inflation has risen by 20% and wages by 15%. These figures point to a widening gap between property values and consumer incomes. First-time homebuyers are particularly affected.
Overall picture of the Australian market
Analysts have noted the positive trends in the market. In Sydney, the time taken to save for a home purchase has fallen by 15 months compared to the previous 5 years. Among the factors driving this momentum are:
– rising wages;
– favourable deposit rates;
– stability in property prices.
Darwin is the most attractive for buyers. Housing costs here are lower than in other major Australian cities.
According to Domain experts, the analysis highlights the key problems in the local property market. High prices have led to low availability of properties for buyers. This makes it particularly difficult for people to buy their first home. The situation is further complicated by a lack of supply. Government support is needed to improve buying conditions. Steps are already being taken in this direction. Australia has a 5-year affordable housing programme.