Unemployment And Job Security Key Drivers Of Concern For A Declining Property Market, Survey Reveals

Media release Strictly embargoed
For publication Sunday 24 May 2009

Unemployment and job security key drivers of concern for a
declining property market, survey reveals


Sixty nine per cent of property seekers believe increasing unemployment is having a negative impact on the

Australian property market, a new survey has found.



The realestate.com.au Consumer Insights Buy report, which investigates the perceptions of property buyers

also revealed over half (55 per cent) showed a high degree of concern about their job security.



This is further evidenced by the findings that job concerns have resulted in many Australians reducing the

amount they are willing to spend on a property (38 per cent), followed by 32 per cent who said they would

delay their property purchase.



Peter Wright, General Manager Residential for realestate.com.au said the findings reveal many buyers are

now becoming extremely cautious and are taking a conservative approach towards property investment

especially in tumultuous times, where there is a lot of uncertainty.



"With increasing unemployment rates, job security is having a direct impact on many Australian families and

their decision to buy," said Peter.



"It's no surprise the level of anxiety is so high, as buying a family home is one of the biggest financial

decisions many people will ever have to make. With the exception of the Australian Capital Territory (47 per

cent), the level of concern about job security in all other states was over the 50 per cent mark," he said.



What is interesting about the survey findings is one in two Australians are now looking to buy within the

$200,000 to $400,000 price bracket.



This reinforces the fact that many property seekers may be taking advantage of the First Home Buyers

Grant and or opting for affordable housing, given the economic downturn.



There has been a 4 per cent decrease in the number of people searching at the upper end of the market

above the $750,000 plus price range.



TOPLINE SUMMARY OF FINDINGS CONSUMER INSIGHTS BUY REPORT AUTUMN 2009 WAVE:

- 69 per cent of respondents said increasing unemployment (+25 per cent)* ranked as the most

significant perceived reason for property prices declining

- 38 per cent said they would reduce the amount they are willing to spend on a property

- 32 per cent indicating they would delay their property purchase

- 15 per cent said they would reduce the amount they are willing to spend on renovations

- 78 per cent claimed slowing economy (-5 per cent) as the perceived reasons for property decline

- 44 per cent believed property prices being too high (-11 per cent)




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- 27 per cent noted rising household debt (-13 per cent) as a reason for the decline in the property

market

- 68 per cent of those surveyed were in full time employment

- Those aged 50-64 years were extremely concerned about their job security (17 per cent)

- Overall, 45 per cent of those earning under $49,000 were extremely concerned compared with just

12 per cent earning $70,000 - $99,999 income



NATIONAL SNAPSHOT AND STATE BREAK UP

Responses to the question:

How concerned are you and / or your partner's job security?

STATE SLIGHTLY /EXTREMELY

CONCERNED

ACT 47%

NT 50%

TAS 50%

QLD 51%

SA 52%

VIC 56%

WA 56%

NSW 58%



About the Consumer Insights Buy report May 2009

The realestate.com.au Consumer Insights Buy report is conducted bi-annually by external research

company 2Degrees Research which captures insights into property seekers' buying intentions, in order to

map their perception of the market. 2,665 respondents took part in this online survey which was conducted

between 14-16 April 2009.



About the REA Group

The REA Group, headquartered in Melbourne, operates Australia's most popular real estate websites and

similar websites around the world. Its sites receive more than 9,911,045 unique visitors per month

(Nielsen//NetRatings, Omniture, Google Analytics, March 2009). The Group had revenues of AUD$156m in

FY 2008 and is profitable. As a listed company on the Australian Securities Exchange (REA), it operates as

an independent entity.


Footnotes:

* Compared to the last wave of the Consumer Insights Buy report, October 2008.


For more information or for an interview contact:

Zoyee Kartalis, Public Relations Manager Ph: 03 8456 4653, Mob: 0428 364 090

Email: [email protected]





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