Lower end property demand climbs

A rise in first home buyer activity has triggered an upswing in sales of affordable, lower priced housing.

According to RP Data, over the second half of 2008, houses between the $300,000 and $500,000 mark accounted for 48 per cent of sales - a 5% increase from the same period in 2007.

“These figures come as no surprise considering that first home buyers now represent more than one quarter of all owner occupied housing, up from just 17% one year ago,” RP Data national research director Tim Lawless said.

Further analysis of RP Data’s research shows properties between $300,000 and $400,000 accounted for the greatest proportion of sales in most capital cities over the course of 2008.

With first home buyer activity expected to continue to be strong for at least the next four months, brokers can expect to see continued demand for properties in this price bracket.

The picture is less rosy for higher priced property with a drop in sales during the same period. Every capital city – with the exception of Adelaide – has seen a decline in sales for houses in the $800,000 plus price bracket.