Aussies divided on desired house price direction,
Australians are evenly split on whether they want house prices to rise or fall in 2025.
A recent study by the Australia Institute reveals that 36 percent of respondents prefer a decrease in house prices.
In comparison, 33 percent of participants desire an increase in prices, reflecting differing views on the housing market.
This division highlights the complexity of the housing market and the challenges in satisfying its diverse participants.
Some Australians yearn for house prices to stabilize at a level that allows them to enter the market.
However, others have tied their financial future and retirement plans to the growth of their property portfolios.
When looking at different respondent groups, investors were the only group where a majority wanted prices to rise (59 percent).
In contrast, 60 percent of renters preferred a decline in house prices, reflecting their financial concerns.
Among homeowners with mortgages, 42 percent wanted prices to go up, while 45 percent of outright owners desired the same.
The Australia Institute surveyed 1009 Australians between November 13 and 15 of this year.
Interestingly, one in five (18 percent) said they were content with house prices remaining stable, the study revealed.
Matt Grudnoff, a senior economist at the Australia Institute, stated that rising house prices have caused significant financial hardship.
“As more Australians are locked out of the market, it has become too expensive for many to support price growth,” he said.
“Increases in house prices have come at a great cost to many people, and housing should offer security, not profits.”
Grudnoff added that less than half of homeowners wanted to see prices continue rising.
Only investors, who stand to benefit the most, favored further price hikes, he noted.
High house price rises have notably affected the Sydney market, particularly boosting apartment sales, according to Domain’s Dr. Nicola Powell.
A significant number of apartments listed for sale were owned by investors, Powell explained.
This year, more units than houses were sold in Sydney, as revealed in Domain’s 2024 Year-End wrap.
Apartments and units accounted for 45.9 percent of sales in Sydney, surpassing the 44.3 percent of house sales.
Dr. Powell suggested that increased investment activity in Sydney has contributed to the rising popularity of units.
Additionally, investors selling off properties has likely affected the market trends, she added.
This trend highlights the affordability issue in Sydney, a global capital city experiencing changing property dynamics.
“We’re seeing higher-density properties transacting more frequently, which reflects the pressures on affordability in the current market,” Powell said.
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Some Australians yearn for house prices to stabilize at a level that allows them to enter the market.
However, others have tied their financial future and retirement plans to the growth of their property portfolios.
When looking at different respondent groups, investors were the only group where a majority wanted prices to rise (59 percent).
In contrast, 60 percent of renters preferred a decline in house prices, reflecting their financial concerns.
Among homeowners with mortgages, 42 percent wanted prices to go up, while 45 percent of outright owners desired the same.
The Australia Institute surveyed 1009 Australians between November 13 and 15 of this year.
Interestingly, one in five (18 percent) said they were content with house prices remaining stable, the study revealed.
Matt Grudnoff, a senior economist at the Australia Institute, stated that rising house prices have caused significant financial hardship.
“As more Australians are locked out of the market, it has become too expensive for many to support price growth,” he said.
“Increases in house prices have come at a great cost to many people, and housing should offer security, not profits.”
Grudnoff added that less than half of homeowners wanted to see prices continue rising.
Only investors, who stand to benefit the most, favored further price hikes, he noted.
High house price rises have notably affected the Sydney market, particularly boosting apartment sales, according to Domain’s Dr. Nicola Powell.
A significant number of apartments listed for sale were owned by investors, Powell explained.
This year, more units than houses were sold in Sydney, as revealed in Domain’s 2024 Year-End wrap.
Apartments and units accounted for 45.9 percent of sales in Sydney, surpassing the 44.3 percent of house sales.
Dr. Powell suggested that increased investment activity in Sydney has contributed to the rising popularity of units.
Additionally, investors selling off properties has likely affected the market trends, she added.
This trend highlights the affordability issue in Sydney, a global capital city experiencing changing property dynamics.
“We’re seeing higher-density properties transacting more frequently, which reflects the pressures on affordability in the current market,” Powell said.
