Almost 10,000 Victorian first-home buyers are hoping their parents will shell out hundreds of thousands of dollars to help them buy a new apartment this year.
Research from realestate.com.au reveals 60,000 Victorians are considering making their first home a recently finished or off-the-plan apartment.
Head researcher Mike Gill said that, nationwide, 16 per cent of first-home buyers (about 44,800 people) considering a new apartment intended to “self-fund” the purchase.
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“We’d expect the numbers to be pretty similar in Victoria,” Mr Gill said.
At 16 per cent, that would mean 9600 Victorian first-home buyers were planning to “self-fund” a new apartment
“(But) I doubt many are using their own money, so a lot are tapping into the bank of mum and dad,” Mr Gill said.
“Though not all of them will get there, some will put their plans on hold.”
Castran Gilbert director Michael Lang, who specialises in off-the-plan apartments in Melbourne, said about 30 per cent of the first-home buyers he dealt with had half their apartment’s price paid by the equity in their parent’s home.
In many cases parents were responding to tighter lending conditions making it harder for their kids to break into the market and shelling out upwards of $200,000, Mr Lang said.
The research also showed 20,000 upsizing Victorian families were considering an apartment — a substantial shift in favour of apartment living.
“Upsizers just weren’t there five years ago,” Mr Gill said.
While the research was completed before huge cracks appeared in the Opal Tower in Sydney and a cladding fire at the Neo200 tower on Spencer St in Melbourne earlier this year, it did show apartment buyers were now checking a developer’s track record.
“Four years ago, buyers were just interested in location and price,” Mr Gill said.
“(But) one of the top things they look at is the developer now.
“Buyers are also looking for things that will save them a bit of money or that give them some extra flexibility — or let them turn on the airconditioning on their way home.”
After years maligned as an oversupplied danger zone, Melbourne’s CBD, South Melbourne and Southbank are now recording the most clicks per advertised new apartment in the state.
Essendon also made the most popular list alongside perennially popular inner-city apartment suburbs Footscray, Fitzroy, Brunswick and Richmond.
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The realestate.com.au research featured in the firm’s Developer Insights Series and surveyed more than 10,000 prospective homebuyers nationwide in a representative study before extrapolating the figures.
MELBOURNE’S MOST POPULAR NEW APARTMENT SUBURBS
— South Melbourne
— Port Melbourne
— South Yarra
*Most clicks per listing on realestate.com.au, October-December 2018