Single, professional women are entering the Melbourne property market despite reports of an average gender pay gap of around $15,000 annually.
A discussion paper released today by ANZ revealed, on average, women working full time earn $295 less per week than men in equivalent positions. This equates to nearly $700,000 over a career, only $6000 less than the current median house price, according to the Real Estate Institute of Victoria (REIV).
Despite the numbers, Melbourne real estate agent Tony Pride said professional, single women make up the majority of his southeastern suburbs clientele.
“Our biggest buyer is [a] single woman, professional, probably between 30 to 50, got a very good job, travels overseas once or twice a year.”
The gender pay gap means women need to consider retirement and financial security earlier on in life, Workplace Gender Equality Agency director Louise McSorely told the ABC’s AM program.
“Getting early financial literacy training and, for a woman, understanding your financial position and being able to manage that longer term, is essential to retirement.”
While women may earn less on average than men, Mr Pride said his women clients prefer to invest their money rather than spend it on premium cars or other luxury items.
“Women buy flats, men buy jet skis,” he said.
Single women are increasingly looking to buy property to achieve financial security independently rather than “waiting for Mr Right”, Mr Pride said.
Jasmin Chia, 21, works as a marketing coordinator. She bought her first apartment at age 19 with the help of her parents.
“My parents have always encouraged my sister and me to get into the property market as soon as possible,” she said. “They taught us that it’s one of the best ways to build wealth and financial security and that the earlier we start, the better off we’ll be.”
Chia said she never personally considered the gender pay gap a barrier to entering the property market, although she acknowledged it would make buying property more difficult for many women.
“As with anything else, generally the less money you earn, the less you can save and the longer it will take you to save that deposit.”
Business development manager at Ray White Melbourne CBD, Kim Ross, said despite these new statistics, women have equal opportunity enter the property market.
“From a real estate perspective, women are not disadvantaged,” she said. “They have equal rights, they can go and get a mortgage.”
Being focussed on long-term security is especially important for young women, according to Chia.
“The biggest obstacle I see people try to get over, whether they’re male or female, isn’t the amount of money they earn, but their attitude towards saving,” she said.
“A lot of people are short-term focused, especially when they’re young, and they don’t know enough about how to invest in property so they’re scared of it.”
