Travel Daily

Travel losing to property


AusTRALIA’s travel industry is losing spend to the first-home buyer property market amid continued restrictio­ns, leading real estate experts believe.

Figures from Tourism Research Australia show that Aussies have saved more than $60 billion a year in cancelled overseas holidays due to COVID impacts, with local property analysts suggesting a portion of that money has been flowing into the real estate market.

“The real difference is people who were planning a big, $30,000 trip around Europe and it’s been off the table for a year now, two years,” Finder’s home loan expert

Sarah Megginson told Domain.

“Every dollar we earn, we have to spend it in Australia.”

The GM of Victorian high-end real estate company The Agency, Peter Kakos, agrees that firsthome buyers had saved money on holidays to put towards a house deposit.

“If people can’t travel they want to make sure they’ve got a better house or a bigger house,” he said.

“People aren’t prepared to wait [to travel] and they go, ‘OK, the money’s there, let’s put it into property,’” Kakos added.

MeAnwhILe a new study by consultanc­y firm Oliver Wyman has found that less than one in five Australian­s currently “feel comfortabl­e” to resume internatio­nal travel, well below the global average of 32%, with low vaccinatio­n rates and tough restrictio­ns viewed by the study as a key driver.

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