The number of first-time buyers will continue to decline in 2014, with one senior industry stakeholder calling on the government to intervene.
According to John Symond, executive chairman of Aussie, low interest rates have failed to attract new buyers.
“This is a long-term, fundamental shift in the property market, where in many areas first home buyers have simply given up on what has been a long-held tradition in Australia – getting started with a small house or an apartment in the suburbs,” he added.
Mr Symond believes it is up to the government to step in and take action.
“The federal government should look at creating tax incentives for first-home buyers to save for a deposit, while more affordable new housing should be constructed to accommodate them.”
However, the situation may not be quite as dire as Mr Symond suggests, with several authorities calling the accuracy of first home buyer numbers into question.
Despite recent rises in property prices, My Symond claims housing will “continue to be at its most affordable level in a decade”.
“2014 will have its challenges for consumers and businesses, but I believe better times are ahead as economic confidence improves in both Australia and overseas,” he said.
