Melbourne has passed Sydney when it comes to intentions of building or buying property in the next 12 months.
New intention data released by Roy Morgan Research shows that 8.3 per cent of Melbourne residents are in the market, passing the 7.8 per cent rate seen in Sydney.
6.8 per cent of Australians (1.3 million) over the age of 14 have shown intention to buy or build property in the next year, amounting to a forecast of approximately half a million homes to change owners or to be built. Sydney and Melbourne make up almost half of the Australians with property intentions, with Perth (165,790) and Brisbane (124,670) following behind.
Brisbane (6.7 per cent), Adelaide (5.8 per cent) and Canberra (5.3 per cent) registered intention numbers below the national norm, with Hobart’s 3.5 per cent placing it in last place.
71 per cent of Sydney property intenders say they are planning to buy, as do 67 per cent of those in Melbourne, which Roy Morgan suggests points to a continuation of the pricing boom throughout the rest of 2015.
“Almost a million capital city residents intend to buy or build property within the next year, whether as an investment or a new or first home. With interest rates now at historic lows, this will no doubt further fuel demand in what many see as an overheated and inequitable housing market,” Roy Morgan CEO Michele Levine said.
“Each state has different first home-owner grant schemes and stamp duty concessions that apply to new or established properties, but these alone cannot explain the contrast in preferences across capital cities. Intention in Perth is almost evenly split between new and established property, while in Sydney over 7 in 10 intenders want to buy established real estate.”