ME's latest Property Buying Intentions Report indicates that demand for residential property is likely to remain strong over the next twelve months.

The number of people intending to buy a home over the next twelve months is greater than the number of people intending to sell by a ratio of two to one.

John Caelli, ME's Treasurer, said, "While recent tightening in bank prudential regulations and lending criteria have reduced the proportion of investor buyers, overall demand for property may remain strong due to increased demand by owner-occupier buyers.

Caelli said that demand from owner-occupiers is likely to remain strong because interest rates are still low and the labour market is strong.

Gen X, or those aged between 18 and 34, stands out as the group most wanting to buy a property in the year ahead. Gen X represented 23% of respondents who said they are currently saving to buy a property, and 25% who said they intend to buy a property this year.

Of those actively buying or selling a home to live in over the next 12 months, 19% are downsizing, 22% are upgrading, and 59% are looking to transact at a similar price-point. 

The report showed that 32% of respondents own their own home, 37% are paying off a mortgage on the home they live in, and 29% are renting.

ME is the trading name of Members Equity Bank, which is owned by 30 major superannuation companies. The bank was initially formed to provide home loans, but now offers a range of low-cost financial products.

The research is based on an online survey of 1,500 Australians aged 18 years and over. ME Bank commissioned DBM Consultants to do the research.