According to a new report from the ING, the current millennials in Australia don`t seem to be as frivolous and dreamless as they used to be. They are also willing to make their own sacrifices to realize the "Australian dream" of home ownership.
The study shows that millennials have gradually abandoned their desire to buy separate homes in favour of three-bedroom apartments close to jobs, shops and schools.
The ING team said the vast majority of Australians aged 22 to 37 are serious about buying a home and 76 percent are willing to make concessions in their lives to buy a home.
These include reducing the purchase of luxury goods to save money and reducing the number of meals that go out. Some people even delay their honeymoon and have children to help them enter the local real estate market. Less than 1/4 said they were reluctant to make such a sacrifice to buy a house.
In addition, most of the thousands of people are ready to give in to where they live, more than 60 per cent are willing to live in a region far from the centre of the city, and almost the same number is willing to extend their commute time for an hour to purchase their first property.
Morgan Owen, director of research at Pollinate, also said the current goals and aspirations of the millennia were similar to those of the baby boomers. "they are family-oriented and believe that owning a property of their own can guarantee the stability of their families and property."
But he doesn`t agree with the ING report`s preference for apartments, saying millennials love more bedrooms, so why buy more expensive apartments.
Lack of planning
If that`s really the case, why aren`t millennials involved in the local property market as described in the ING report.
"while a lot of young people are saving for their families, they don`t have a clear plan, and about 61 percent are not sure how much money they need to save to buy a house," said ING`s team.
According to Melanie Evans, head of Australian retail banking at ING, first-time buyers usually need to save up to A $170000, which is not an easy thing for local young people.
"obviously, they need help, even those who know how much they should save."
In addition to exactly how much money to save, Melanie Evans says many young people don`t know much about the process of buying a house. The head of a local real estate agency says most of his clients don`t know where to start when they buy property.
"the most frequently asked question we get is-what am I supposed to do now?"
He attributed the confusion to popular real estate markets in cities such as Sydney, which made it difficult for willing buyers to accurately calculate enough deposits. "if prices go up, their demand for deposits will increase, and that`s the question in people`s minds."
House prices may continue to fall
As of May 13, the performance of house prices in Australia`s major capital cities, including Sydney and Melbourne, has stabilized over the past week. CoreLogic data showed no change in average house prices in Australia`s five major capital cities. In sharp contrast to the downward trend in recent months.
Sydney, Melbourne and Brisbane, Australia`s largest real estate markets, have seen no change in their median home prices compared with a week ago. In addition, Adelaide prices rose 0.2 percent, Perth prices fell 0.1 percent, and the weighted average of house prices in capital cities remained unchanged.
However, although home prices in major cities did not fall from last week, prices fell last month in all capital cities, except Adelaide, according to 0.2%.CoreLogic data. Melbourne led the decline by 0.4 percent, Sydney by 0.2 percent, and Brisbane and Perth by 0.1 percent.
