The COVID-19 pandemic has turned the economy on its head and forced many of us to rethink our financial goals, but new research from ING has found Aussies’ interest in the property market has hardly waned.
In a survey of 2,075 Australians, nearly half (44%) viewed property as the current strongest investment option and over a quarter (26%) believed now is the best time to get a foot on the property ladder.
“The research suggests COVID-19 has left many Aussies cautiously thinking about how they can invest to take greater control of their financial future,” said ING’s head of home loans, Julie-Anne Bosich.
“While, understandably, not everyone is in a position to use their finances to invest, our research has found that for those who are, the preferred investment choice is property, especially in the current climate where interest rates are at a record low.”
Among this property-hungry cohort, young Australians are well-represented. 25% of millennials surveyed said they are currently saving to purchase a home and 50% felt positive about their chances, with low interest rates and dipping prices the main drivers of confidence.
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Having fewer opportunities to spend has also worked out in Aussies’ favour, with 37% of respondents saving more than usual since the pandemic struck and 56% stating they are currently in a better position to achieve their financial goals.
As for where Australians are looking to buy, 28% of respondents are currently eyeing Melbourne, followed closely by Sydney (24%), Brisbane (17%), and the rest of New South Wales (16%).
It’s perhaps no surprise that Melbourne currently tops the list of most sought-after locations. According to property research firm CoreLogic, Melbourne property values have fallen a staggering 5.5% since March.
Since restrictions were eased and property agents given permission to resume onsite inspections, new listings in the city have jumped up by 330%.
“The result is likely due to months of pent-up decisions to sell from vendors, and reflects how the real estate transaction process has remained tied to physical inspections,” said CoreLogic head of research Australia, Eliza Owen.
If you’re looking to purchase an investment property of your own, be sure to check out our investment home loan comparison page, or browse the selection below.
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