Westpac report reveals latest homebuyer trends

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Nov 30, 2017

Westpac report reveals latest homebuyer trends

First-home buyers are prepared to compromise on trendy neighbourhoods, safe streets, and proximity to work and public transport in order to get their foot on the property ladder, according to the findings in the 2017 Westpac Home Ownership Report.

Photo by Nathan Fertig on Unsplash

The Westpac 2017 Home Ownership Report shows how first-home buyers are reprioritising when they are looking for their perfect home.

The research, commissioned by Westpac in September, surveyed over 1,000 Australian home owners and first home buyers, and compared the results with data from the previous two years.

'Safe', 'trendy', and even 'close to work' and 'close to public transport' are no longer as important to home buyers, according to the report.

The latest survey shows that 67 per cent of homebuyers said safety was important to them when deciding where to buy, down from 73 per cent in 2016.

Only 3 per cent of first home buyers said living in a trendy area was important to them, down from 15 per cent in 2016's report.

Access to public transport was important for 37 per cent of respondents in 2017, down from 47 per cent in 2016.

Buyers weren't as concerned about living in a quiet area, with 36 per cent saying it was important, down from 56 per cent last year.

But first-home buyers are more keen on modern bathrooms and new kitchens.

Among first home buyers, modern bathrooms were important for 45 per cent in 2017, up from 36 per cent in 2016.

And modern kitchens were important for 44 per cent in 2017, up from 40 per cent in 2016.

Head of Home Ownership for Westpac Group, Andy Wright said buyers are becoming more flexible as house prices rise, and are prepared to change their priorities.

Greater flexibility appears to be paying off for first-home buyers.

"The market saw home loans to first home buyers rise to a four year high of 17.4% in September of this year, which suggests we may be already seeing the positive results of these shifts", said Wright, adding that government incentives in New South Wales and Victoria were also helping.

The trend towards renovating is growing, as the costs of buying and selling escalate.

Renovating is up by 14% since 2015, according to the report.

“Our data shows that home owner-occupiers are increasingly choosing to focus on improving their current home rather than selling and relocating,” said Wright.

The report also shows that 17 per cent of first home buyers add to their main source of funding with the help of family and friends.