Home buyer confidence is starting to bounce back after the global financial crisis, new data has found.
According to Datamonitor research, 8 per cent of Australians intend to purchase an investment property in the next 12 months, while 7 per cent plan to purchase their first home.
“Despite record-low housing affordability due to steadily rising property prices and interest rates, first home buyer intentions reached surprising strengths in the recent Datamonitor survey,” Datamonitor’s financial services analyst Petter Ingemarsson said.
According to Mr Ingemarsson, the amount of first home buyers looking to buy a property in the coming 12 months increased from 6 per cent recorded this time last year.
“The strong first time buyer demand in the survey is largely driven by confidence in property prices,” he said.
Investment property intentions have also reached a high, with 8 per cent of consumers indicating that they intend to purchase an investment property in the next 12 months. This is an increase from 5 per cent of respondents in 2009.
Potential property investors fail to be deterred by the prospect of increasing interest rates.
“The prospect of capital gains drives property investor intentions, with rent income a secondary consideration.”