subscribe to our newsletter
Aussie households saving more for property

Aussie households saving more for property

A new survey has revealed that household savings directed towards property reached its highest level in over a decade during the September quarter.

The quarterly St.George-Melbourne Institute Household Financial Conditions Report found that household savings directed towards property lifted to 25.9 per cent during the quarter – the highest level since the index was established in March 2001.

Saving to buy or put a deposit on a house fell 2.1 percentage points to 13.8 per cent over the quarter, while saving to renovate or improve a home rose 1.4 points to 38.5 per cent.

The report also found that a mortgage was the most common form of household debt, with 36.5 per cent of respondents indicating they had a home loan – up from 36.1 per cent from the 12 months prior.

Looking more broadly, Australia’s household financial conditions declined marginally in the September quarter, but remain up 4.4 per cent on a year earlier.

St. George Bank chief economist Hans Kunnen said the improvement in financial conditions over the year can be attributed to a pick-up in employment growth and the low-rate mortgage cycle earlier in 2015.

“Those in the 25 to 64 age group saw the greatest improvement in financial conditions during the September quarter – likely to be positively affected by recent job creation and again lower mortgage rates,” he said.

“We also saw a strong rise in the financial condition of those at lower income levels during the September quarter – this may be a reflection of solid growth in part-time employment.”

Aussie households saving more for property
mortgagebusiness

Latest News

The changing role of banks and technological innovation mean that the biggest challenge facing banks is adapting quickly but safely, the CEO...

The Australian government has passed legislation designed to provide ASIC and the ACCC with new investigative powers to assess contract term...

Imminent lender 86 400 has signed an agreement with an open banking API specialist to power its platform. ...

FROM THE WEB

podcast

LATEST PODCAST: How Australia can learn from overseas markets

Is enough being done to ensure responsible lending?