First-home buyers dominated activity in new property markets during the first quarter of 2016, with their share of new property demand rising to 33.5 per cent from 29.2 per cent.
According to NAB's Quarterly Australian Residential Property Survey Q1 2016, first-home owner-occupiers are more active in New South Wales at 21.9 per cent and Queensland at 12.9 per cent. Their share of total demand rose to 19.1 per cent nationally from 18.3 per cent in the last quarter of 2015.
First-home investors also increased in New South Wales at 17.9 per cent, Queensland at 16 per cent, and Victoria at 8.2 per cent. This accounts for 14.4 per cent of total national demand at the investor level.
Meanwhile, foreign buyers in new property markets continue to recede as they only account for 11.8 per cent of total demand—its lowest level since 2014. They were particularly less prominent in Victoria, New South Wales, and Western Australia, though their market share slightly rose in Queensland.
When it came to established property, the market shares of first-home owner-occupiers fell to 17.6 per cent from the December quarter's 20.2 per cent. Buyers were less active in all states except Queensland. On the other hand, first-home investors were more active in all states except Western Australia. Foreign buyer shares also fell from 8.6 per cent to 7.2 per cent in established markets.
Property professionals expect new property demand in almost all types of properties to be stronger by next year in all locations. However, expectations for established property demands are mixed, as they anticipate weaker demand in all properties except for houses and low and high-rise apartments in the middle and outer ring.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan