PropertyBuzz, your daily dose of property news.
Young Aussies choose holidays over homeownership, Australia’s beachside property boom is still going strong, and is an influx of East Coasters to blame for Perth’s supply crisis?
Welcome to Property Buzz! I’m Orana Durney-Benson.
Today is Saturday, 27 January, and young Aussies are choosing holidays over homeownership.
– A study by InsureandGo found that 71% of adults under 30 in Australia plan to spend their money on travel rather than property in the next year due to rising house prices.
– InsureandGo’s chief commercial officer stated that the trend is driven by a combination of rising house prices and shifting cultural values that place more importance on experiences that possessions.
– The percentage of people prioritising travel over property decreases with age, with the majority of people aged 31 to 50 choosing to spend money on purchasing a home rather than travel.
And sticking to the holiday theme, the sea-change property boom that was seen at the height of COVID is still going strong.
– A report from CoreLogic revealed that over one-third of coastal housing markets in Australia have reached record high median home values, despite economic pressures and market uncertainty.
– Western Australia dominated the list of top coastal suburbs, with over half of the top 20 suburbs located there, some of which saw yearly gains of up to 28%.
– Some coastal markets did see significant drops from their COVID highs, with some areas in NSW experiencing decreases of over 40%.
And over on the West Coast, president of the Real Estate Institute of Western Australia Joe White has reported that East Coast residents are increasingly investing in WA due to affordable prices and significant rental growth.
– The influx of investors is beneficial for renters, as it increases the number of rental properties in a market with a tight vacancy rate of 0.5%.
– However, Mr White noted that it also intensifies competition for homebuyers in certain areas.
– Mr White emphasised that the driving issue behind soaring home prices in WA remains the state’s low level of building completions, noting that construction levels are insufficient to meet the needs of the growing population.
That’s it for today.
See you again on Tuesday, 30 January, for your daily dose of Property Buzz.