First home buyers are expected to help offset a fall in demand from property investors in the next 12 months.
ME Bank’s latest Property Buying Intentions report, based on an online survey of about 1,500 Australians, shows a jump in owner occupiers intending to buy a home this year.
In the six months to December, the proportion of those intending to buy a home rose by five points to 50 per cent, compared to its previous survey based on the six months to June.
This includes a one per cent increase in first home buyers to 22 per cent.
The report said the rise in owner occupiers have offset a five point fall (to 33 per cent) in the proportion of investors intending on buying property.
ME treasurer John Caelli said tighter lending regulations on banks have eased demand from property investors, however he said this may result in a jump in owner occupiers, including first home buyers.
“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,” he said.
Planned sales by home owners remained unchanged at 26 per cent, while there were fewer intended sellers of investment properties, down five points to eight per cent, the results show.