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Buyers are more likely to spend more to secure a property as their preferences shift towards bigger spaces with higher price tags, recent data has shown.
REA’s latest report has confirmed what real estate pundits have been saying for months, that buyers are in the market for more space, with demand for houses continuing to outpace units over the last 12 months.
In fact, the report revealed that three-bedroom dwellings have emerged as the most popular house type among buyers. In contrast, searches for one-bedroom dwellings have declined, particularly in capital cities.
During the same period, the $500,000 to $750,000 category emerged as the most popular price filter. In the sub-$750,000 range, 57 per cent of all searches came from buyers in regional areas, while 35.7 per cent came from those in capital cities.
Meanwhile, searches for sub-$500,000 properties saw a significant decline both in capital cities and regional areas.
Going further up the price ladder, properties in the $1 million-plus range accounted for 42.3 per cent of the share of searches over the past 12 months, up from 36.2 per cent in the year prior.
Properties in the $1 million to $1.5 million range saw the largest growth both in capital cities and the regions.
According to the report, apart from the desire for open spaces, buyers seeking more expensive properties are primarily buoyed by “the low cost of debt and subsequent price rises”, REA Insights economist Anne Flaherty noted.
“While enquiries are growing, the significant change seen over the past 12 months can be partly attributed to the impact of the introduction of COVID-19 restrictions during March 2020,” Ms Flaherty explained.
Enquiries for new developments have also continued to surge over the same period, with land estates outpacing apartments.
According to the report, enquiries for apartment projects increased by 115.1 per cent, while enquiries for land estates were up by as much as 262.7 per cent. In March 2021, land estates accounted for 57.6 per cent of all enquiries.
Looking ahead, Australia’s property market is expected to continue its recovery on the back of stronger demand, low rates and increased listings.
“Australia’s property market shows no signs of slowing in 2021. The low cost of debt combined with an unprecedented level of government support has seen buyer activity surge this year,” Ms Flaherty continued.
“Demand is strong, with views per listing at record highs and days on site at record lows.
“Transactions are trending upwards and will likely keep rising as more listings are brought to market over the remainder of 2021.”
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