Analysis of Australian Property Market for Lifetime Mortgage Entry
Oxford Economics Australia conducted a comprehensive analysis of the Australian property market and later stage property ownership, providing key insights to support the client's strategic decisions regarding their entry into the lifetime mortgage market.
Project background
The client, a global financial institution, faced challenges in assessing the potential of the Australian lifetime mortgage market. With a small and declining reverse mortgage market, low product awareness, and stringent regulations, the client sought Oxford Economics Australia’s (OEA) expertise to analyse the property market and later-stage property ownership. The primary problem to resolve was to provide a comprehensive understanding of the current and future property market conditions, characteristics of older homeowners, and potential market risks. This was crucial for the client’s strategic decision-making regarding their entry into the lifetime mortgage market.
Approach and solution
We undertook a comprehensive analysis of the Australian property market and later-stage property ownership for the client. The study focused on providing insights that would inform the client’s assessment of the lifetime mortgage market in Australia. The team conducted a thorough review of the macroeconomic environment, including economic activity, labour market conditions, financial market conditions, and population drivers and composition. The current and future conditions of Australia’s property market were also examined, with a focus on price growth, dwelling approvals, and dwelling completions.
A detailed snapshot of the later-stage property ownership cohort was provided, including the size of the cohort, their location, employment status, income streams, and potential growth. This information was crucial, as this segment was identified as the target population for lifetime mortgages. Finally, the team analysed the key risks to the Australian property market and the later stage property ownership market across economic, regulatory, environmental and social factors.
Conclusion
The findings from our analysis provided the client with a comprehensive understanding of the market conditions, enabling them to make informed strategic decisions about their entry into the lifetime mortgage market.
