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- Have any questions?
- 02 9247 6000
- media@commsroom.co
The statistics unveil a striking trend. Last year, a significant 46% of new property investors were millennials, followed closely by Gen X, constituting 37% of all new investment property acquisitions throughout the year. Nationally, the average age of property investors stood at 43 years, with an average loan size exceeding $500,000.
Commonwealth Bank Executive General Manager Home Buying, Dr Michael Baumann, delves into the data, highlighting the intriguing phenomenon of a substantial proportion of millennial property investors opting for solo property purchases.
“From our data, we can see that almost one-third of all millennial property investors actually purchased their investment property on their own,” he remarked.
Over the past year, data from the Australian Bureau of Statistics points to investors as the primary catalyst of new lending. With lending growth in this segment surging by 18.5%, lending to first-home buyers witnessed a 13.2% rise, while owner-occupiers experienced a more modest 3.4% increase.
“Interestingly, what we continue to see from many Aussies is the inclination to ‘rentvest’, buying property where they can afford and then renting where they wish to live,” noted Dr Baumann.
Related: Call for input from potential users of new home of regional specific data
The top postcodes for new property investment purchases in 2023 were 2000 (Sydney CBD, including Haymarket), 3029 (West Melbourne, including Hoppers Crossing), 2765 (North West Sydney, including Marsden Park), 3064 (North Melbourne, including Craigieburn), and 2155 (North West Sydney, including Kellyville).
Dr Baumann underscored the enduring popularity of these postcodes among investors, with data from 2019 revealing consistent performance in these areas over the years.
Regardless of the chosen property and partnership dynamics, CommBank stands ready to provide support. Dr Baumann highlighted the bank’s ‘Property Share’ loan product, designed to facilitate joint property purchases with family and friends while preserving individual financial autonomy.
“With growing challenges around housing affordability and cost of living, Property Share may be appealing to customers who are looking for new ways to be able to afford a property given the current conditions,” Dr Baumann emphasized.
Moreover, CommBank offers a suite of digital tools, including Home Hub within the CommBank app, equipping customers with essential information and resources to make informed property investment decisions.
Adrianne Saplagio is a Content Producer at Comms Room, where she combines her passion for storytelling with her expertise in multimedia content creation. With a keen eye for detail and a knack for engaging audiences, Adrianne has been instrumental in crafting compelling narratives that resonate across various digital platforms.