The number of young Australians entering the property market has collapsed with figures showing a 27 per cent annual decrease in that sector.

Our company’s own data has found the number of first home buyers aged 25-35 fell from 55 per cent of the sector at the end of the 2015 fiscal year to 40 per cent by June 30, 2016.

The findings by iBuyNew, which specialises in off-the-plan properties, follow this week’s latest housing finance figures from the Australian Bureau of Statistics which found the percentage of owner-occupier loans to first time buyers was at a 12 year low.

A combination of rising property prices and negative media about the real estate and home finance markets had helped to scare off young first home buyers.

Despite record low interest rates, the first time buyer sector has collapsed.

Even though property is very affordable with interest rates set to stay at historical lows, young Australians have been put off entering the market.

It’s an issue for state and federal governments with the current schemes to entice first home buyers out of the rental market either out of date or ineffective.

The ABS this week found the percentage of owner-occupier loans to first home buyers slid to 13.9 per cent in May, 2016, down from 14.4 per cent in April. Not since April, 2004, has the percentage of owner-occupier loans to first home buyers been this low. First time investors are not included in ABS data.

With the federal election out of the way and a result now clear, there may be more confidence among young first time buyers during the second half of 2016.

A recent survey we conducted found while the majority of people weren’t deterred from purchasing property by the election, a lot of people wanted to await the outcome.