With high market optimism, 76% of investors are expecting prices to increase further in the next 12 months
Property investors have maintained their optimism about the property market this year as three in five believe now is a good time to invest, according to the Property Investment Professionals of Australia (PIPA).
PIPA’s latest poll showed that property investors have been actively participating in the market over the past year, with a third of investors purchasing a property.
Around the same share of investors intend to purchase a property in the next six to 12 months.
Property investors also had positive expectations about property prices this year.
PIPA chairperson Peter Koulizos said this year’s poll results indicate that more property investors are confident in the property market despite the hiccups brought about by the recent lockdowns and restrictions.
When we think back to last year, which was a time of much fear and uncertainty, it’s clear that property investors and the market in general has weathered that turbulent period better than anyone dared to hope, Mr Koulizos said.
That said, last year’s survey did forecast the strong property price growth that we have since experienced, it’s just that not many people believed us at the time, he said.
With high market optimism, 76% of investors are expecting prices to increase further in the next 12 months.
The majority of investors who are planning to buy over the next year are “veterans”, or those who have purchased several properties in the past.
Nearly half of these veterans currently hold two to four properties in their portfolio, while around 20% have five to 10. A fifth of these investment veterans currently have only one investment property.
While investment veterans lead the pack in terms of activity and outlook, first-time investors still had considerable contribution, with 16% of all investment property transactions over the past year involving first timers.
Though the pandemic lockdowns did not dampen investor sentiment, they did change the way investors would like to invest.
Around a quarter of investors would like to set their sights beyond crowded cities, the study showed.
58% of all investors believe Queensland has the best investment prospects among all states and territories.
Brisbane also beat its counterparts, with 54% of investors believing it has the rosiest outlook among all capital cities.