The way Australians buy and sell property is evolving with the increasing accessibility of digital platforms. Who hasn’t scrolled through listings on their phone or computer even when not in the market for a new home?
Online tools provide opportunities for buyers and sellers as they are visually engaging and offer the potential to capture a wider audience. It allows us to inspect a property from the comfort of our home without even getting off the lounge. We can walk down a street and even explore a suburb when located kilometres away.
A new survey conducted by LJ Hooker, however, found even with the appeal of digital marketing, most people still value the expertise of real estate professionals.
The report, entitled Navigating the Australian Property Market, examines key trends in property sales and communication preferences when dealing with agents. It also explores different ways generations are approaching homeownership.
Key insights from the research include:
- Less than a quarter of Australians consider selling their home without a real estate agent.
- Despite advances in technology, face-to-face meetings remain the preferred way to communicate with agents. However, digital communication is gaining traction among younger generations, with Gen Z (48 per cent) and Gen Y (60 per cent) preferring email communication.
- Co-ownership is gaining traction, with 27 per cent of Australians open to buying a property with a friend or sibling—rising to 44 per cent among Gen Z.
- 30 per cent of homebuyers have parents open to providing them financial assistance, reflecting the challenges of saving for a deposit in the current market.
The Role of Real Estate Professionals Remains Strong
While platforms like Facebook Marketplace and online property portals have made private property sales more accessible, many Australians still prefer working with an agent. The survey conducted by Edentify revealed that 21 per cent of respondents have considered selling privately, with younger generations more open to the idea.
LJ Hooker Group Head of Research, Mathew Tiller, says many sellers soon realise the complexity of handling a property sale without expert guidance. Local expertise (62%), commission rates (51%), and customer service (47%) were the most important factors reported when choosing a real estate agent.
“At the end of the day, people want to achieve the highest price possible for their home and this requires more than just uploading photos or videos online and hoping for the best,” Mr Tiller said.
“With fluctuating market conditions, competing offers, and strict regulations, working with a professional real estate agent removes stress and ensures a better outcome.”
Young Buyers Embrace Co-Ownership and Apartment Living
As standalone homes become less attainable in major cities, younger generations are rethinking their path to homeownership. Co-ownership offers a practical solution for first-time buyers or investors looking to enter the market sooner.
It allows people to purchase property with a partner, family member or even a friend.
- 44 per cent of Gen Z and 30 per cent of Gen Y would consider co-owning a home with a friend or sibling, compared to just 18 per cent of Baby Boomers.
- Forty-five per cent of Australians are open to apartment living, with younger buyers leading this trend (61 per cent of Gen Z vs. 45 per cent of Gen X).
“Australians still equate property ownership with financial security, but rising affordability challenges means looking for alternative pathways such as co-ownership or apartment living,” Mr Tiller said.
The co-ownership of a property is a legal relationship bound by an agreement signed by all joint partners. It covers who is entitled to reside at the property, who is responsible for mortgage payments and maintenance payments, and what happens in the event of death or bankruptcy.
Mr Tiller stressed the importance of due diligence: “If buying a property with a friend or family member, seek legal advice and have an exit plan in case one party needs to sell early.”
Parents Continue to Play a Key Role in Homeownership
Saving for a home deposit remains a major hurdle for many young buyers. While Government assistance schemes have helped, more young people are relying on the ‘Bank of Mum and Dad’ support to bridge the gap. While it has always been a part of property markets, it’s become more popular over the past decade, driven by rising property prices, affordability and strict lending criteria. According to the survey:
- 30 per cent of Australians have family open to providing financial assistance from the ‘Bank of Mum and Dad’
- 82 per cent of parents are open to helping their children enter the property market.
“Parents want their children to have the same financial security they have enjoyed through owning property,” Mr Tiller said.
“There are many ways they can go about this, from giving them a cash gift, acting as a co-guarantor, or even letting them stay at the family home rent-free until they have saved a deposit.”
Other Key Insights from the Survey
- While a freestanding home is the ultimate goal for most generations, many are open to apartment living over a house if it meets their needs, especially Gen Z (61 per cent), compared to 37 per cent of Baby boomers.
- When selling their home, Gen Y and Z showed a preference for social media advertising, while a proportion of Baby boomers still value newspaper advertising.
- Traditional marketing tools like flyers and brochures continue to play a role when selling property but are no longer seen as the primary drivers of buyer engagement.
Your LJ Hooker agent knows what type of marketing will work in your local area. They are trained professionals with detailed data-driven insights. They assist sellers in pricing their homes competitively and even when is the right time to list. Our agents have a vast network of contacts, including potential buyers, fellow agents, and industry professionals such as stylists, photographers and copywriters, who all assist in creating successful marketing campaigns.
DISCLAIMER - The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.
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