Property market sentiment continues to rise, finds ME Bank

Property market sentiment in Australia has risen to its highest levels since 2019, according to ME’s latest Quarterly Property Sentiment Report.

The lift in sentiment is being driven by widespread expectations property values will rise, along with increased market activity, record low interest rates and a host of government incentives.

More than half of respondents (54 per cent) said they believed prices will go up, compared to just 7 per cent who believed a market correction will occur. Owner occupiers were the most optimistic group, with 57 per cent predicting prices will continue to rise.

“While there are still many challenges such as unemployment and job insecurity, it’s promising to see how sentiment and market activity have rebounded,” said ME’s head of home loans and personal banking, Claudio Mazzarella.

“Government incentives such as HomeBuilder and record low interest rates have no doubt been large contributors to driving momentum across the market.”

Among those with eyes on the property market, 72 per cent said the HomeBuilder scheme, stamp duty relief, and first home buyer incentives had made buying or investing a much more attractive option.

RELATED: Property values have surpassed pre-Covid levels, says CoreLogic


Confidence was highest among the investor and owner occupiers cohorts, where property sentiment rose 15 and 17 percentage points, respectively. Mazzarella said this reflects a broad improvement in households’ finances.

“It’s clear from our latest Report that most Australians anticipate a strong uptick in residential property prices. The data also shows a general increase in people’s sense of wealth and financial confidence as a result of these price movements,” he said.

First home buyers were less optimistic, however, with positive sentiment sitting at just 27 per cent, 4 percentage points lower than last quarter. A staggering 95% of first home buyers said housing affordability remains a major concern.

“The flip side to higher property prices is that it will make it harder for first home buyers to get their foot in the door. It will be important for new entrants in the property market to do their research,” said Mazzarella.

For more information about mortgage and lending trends, visit our home loan statistics page. And for an idea of where interest rates currently sit, check out our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 29 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Smart Booster Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a. variable
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • Mozo Expert Choice Badge
    UHomeLoan - Discount Offer
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Details
  • Mozo Expert Choice Badge
    Celebrate Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a. variable
    1.89% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Details
  • Variable Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

    Details
  • Mozo Expert Choice Badge
    Variable Home Loan Special
    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 28th February 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.