Money Research with Money Matchmaker®
What purchase decisions are Australians planning to make in the current property market?
A Money.com.au Study September 2022
About the study
Money.com.au commissioned a survey of an independent panel of 1003 Australians to discover whether homebuyers intend to purchase a property a lower price point and the actions they will take to reduce the cost.
The pool of survey respondents matches the age and geographical spread of the Australian population.
Questions
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Would Australians wait to buy, or purchase a lower-priced property?
Money.com.au sought to uncover whether Australians would actively change their property buying behaviours or criteria to ensure they pay less for a property.
- Eight in ten (79 per cent) respondents said they would, if they were in the market for a property.
Will you try to purchase a lower-priced property?
Across the states
- NSW, ACT and Victorian residents (79, 80 and 79 per cent respectively) are most likely to actively buy at a lower price point.
This compares with:
- 76 per cent of Queenslanders
- 75 per cent of South Australians
- And 78 per cent of West Australians.
Respondents that will try to purchase property at a lower price point. By state.
Across the age groups
Younger age groups are also more likely to look to buy property at a lower price point: - 86 per cent of 18-34-year-olds,
Compared with:
- 82 per cent of 35-54-year-olds
- And just 69 per cent of over-55s.
Will Australians actively try to find ways to purchase a property at a lower price point?
| Response | Age: 18-29 | Age: 30-54 | Age: 55+ |
|---|---|---|---|
I will | 86% | 82% | 69% |
I am not | 14% | 18% | 31% |
Purchase at a lower price point across work status
Money.com.au also analysed the survey results across work status. A similar proportion of self-employed and employed respondents indicated they would try to purchase property a lower price point:
- At 90 per cent and 85 per cent respectively.
In contrast:
- Just 60 per cent of retirees said the same.
Will Australians actively try to find ways to purchase property at a lower price point?
How does relationship status affect the response?
Survey respondents also identified their relationship status, with an interesting segment of this respondent pool revealing they aren’t interested in purchasing a property at a lower price point.
While a high proportion of respondents who indicated they were:
- Engaged (91 per cent),
- In a relationship (85 per cent),
- De facto (83 per cent),
- Or married (81 per cent).
Would actively try to find ways to purchase a property at a lower price point
- Just 49 per cent of divorcees said they would do the same.
Will Australians actively try to find ways to purchase a property at a lower price point?
| Response | Single | In a relationship | Engaged | De facto | Married | Divorced | Separated | Widowed |
|---|---|---|---|---|---|---|---|---|
I will | 76% | 85% | 91% | 83% | 81% | 49% | 93% | 72% |
I am not | 24% | 15% | 9% | 17% | 19% | 51% | 7% | 28% |
What specific actions will property buyers take to purchase at a lower price point?
Respondents were asked to specify the actions they would take – from a list of five – to help them purchase a property at a lower price point.
- Nearly half of respondents (43 per cent) said they would hold off on purchasing a property for a few months as they expect prices to continue to fall
- While 12 per cent revealed they would purchase a smaller home
- And 11 per cent would buy in a lower-priced area.
- Other steps respondents indicated they would take included buying an older home that required updates, as chosen by 9 per cent
- And buying a property with family to create a multigenerational home (chosen by 4 per cent).
If you were in the market to buy a property, would you do any of the following to help you purchase at a lower price point?
Respondents who would wait to purchase property. By State.
Respondents across the States were similarly prepared to wait a few months before purchasing a property, in the hopes of a further price drop.
- More than half (56 per cent) of ACT residents indicated they would wait to purchase a property
- Followed by 52 per cent of West Australians
- 45 per cent of South Australians,
- 43 per cent of Queenslanders,
- And an equal 41 per cent of Victorian and NSW residents.
Other actions respondents would take to reduce the cost of a property purchase. By State.
A smaller proportion of respondents selected other actions to help reduce the cost of a property purchase, with minimal differences across the States. Specifically,
- 14 per cent of NSW residents indicated they would buy a smaller home
- Followed by 13 per cent of Queenslanders
- And an equal 9 per cent of Victorians, South Australians and West Australians.
Purchasing an older home
More South Australians indicated they would purchase an older home
- At 13 per cent
Compared with:
- 9 per cent of West Australians
- And 7 per cent of Queenslanders
Buying in a lower-priced area
A slightly larger proportion of Victorians would also buy in a lower-priced area,
- At 15 per cent,
- Followed by 13 per cent of NSW residents
- 9 per cent of Queenslanders
- And an equal 6 per cent of South Australians and West Australians.
If you were in the market to buy a property, would you do any of the following to help you purchase at a lower price point?
| Response | NSW | VIC | QLD | SA | WA | ACT |
|---|---|---|---|---|---|---|
Wait a few months | 41% | 41% | 43% | 45% | 52% | 56% |
Buy a smaller home | 14% | 9% | 13% | 9% | 9% | 6% |
Buy an older home | 10% | 11% | 7% | 13% | 9% | 6% |
Buy in a lower-priced area | 13% | 15% | 9% | 6% | 6% | 0% |
Buy a property with family | 4% | 4% | 4% | 3% | 3% | 13% |
I am not looking to purchase at a lower-price point | 19% | 20% | 24% | 25% | 22% | 19% |
Actions respondents would take to reduce the cost of a property purchase. By age group.
Younger Australians are more likely to wait a few months to ensure they pay less for a property:
- Nearly half 47 per cent of under-35s indicated they would wait to make a purchase
- Compared with 42 per cent of over-35s.
Across the age groups, there was slight variation between other actions respondents would take to help them purchase a property at a lower price point. Specifically,
- 13 per cent of under-35s indicated they would buy a smaller home,
- Compared with 11 per cent of over-35s.
A small proportion also indicated they would buy property in a lower-priced area:
- 13 per cent of under-55s selected this action,
- Compared with 7 per cent of over-55s.
A larger proportion of younger respondents would also purchase an older home:
- 11 per cent of under-55s selected this action,
- compared with 7 per cent of over-55s.
If you were in the market to buy a property, would you do any of the following to help you purchase at a lower price point?
Does work status affect the actions respondents would take to reduce the cost of a property purchase?
Money.com.au also analysed the survey results across work status. Employed, self-employed and unemployed respondents were similarly prepared to wait to buy a property.
- An equal 45 per cent of respondents who indicated they were unemployed or employed said they would wait a few months to help purchase a property at a lower price point
- Along with 44 per cent of self-employed respondents.
- In contrast, just 36 per cent of retirees said the same.
Respondents who indicated they were self-employed were also more likely to purchase a smaller home,
- At 16 per cent.
- This was followed by 12 per cent of those who said they were employees,
- 11 per cent of retirees
- And 6 per cent of respondents who are not employed.
More employed and self-employed individuals would also buy in a lower-price area,
- At an equal 13 per cent.
- This compares with 8 per cent of those who aren’t currently employed
- And 5 per cent of retirees.
If you were in the market to buy a property, would you do any of the following to help you purchase at a lower price point?
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