Powered by MOMENTUM MEDIA
subscribe to our newsletter

Investors undeterred by property price projections

Projected declines in residential property prices will not dissuade investors from proceeding with their plans, with 44 per cent expecting to purchase a home over the next 12 months, new research has found.

According to the Property Investment Professionals of Australia’s (PIPA) 2020 Investor Sentiment report – which involved a survey of approximately 1,100 property investors in August – investors remain relatively optimistic despite the ongoing COVID-19 crisis.

While down from 82 per cent in 2019, approximately 57 per cent of respondents said now is a good time to invest in residential property.

Approximately 77 per cent of respondents said projected falls in dwelling values of up to 15 per cent would not thwart their investment plans, with 44 per cent expecting to purchase a property in the next six to 12 months.

“While there is no doubt that 2020 has been one of the toughest in living memory for everyone around the globe, property investors have remained resilient in the face of the unprecedented uncertainty that we are all experiencing,” PIPA chairman Peter Koulizos observed.

Advertisement
Advertisement

Moreover, 71 per cent of investors said they’re less likely to sell an investment property due to uncertainty caused by the pandemic, which Mr Koulizos claimed would “help to underpin property prices”.

Investors exploring alternative locations

The survey also found that over 40 per cent of investors intend to buy property interstate.  

“Investors are recognising the value of working with property investment professionals to help them secure the best opportunities across the nation,” Mr Koulizos added.

Additionally, 17 per cent of investors also said the COVID-10 pandemic had caused them to consider permanent relocation, with improved lifestyle the main reason cited (78 per cent), followed by opportunities to work from home in the future (46 per cent) and housing affordability (40 per cent).

PROMOTED CONTENT


The most popular locations for migration were regional NSW (21 per cent), regional Queensland (18 per cent), Brisbane (16 per cent) and regional Victoria (14 per cent).

According to 36 per cent of respondents, Queensland offers the best investment prospects over the next year, followed by Victoria (27 per cent) and NSW (21 per cent).

Of the major capitals, Brisbane was cited as having the best investment prospects (36 per cent of respondents), followed by Melbourne (27 per cent), Sydney (18 per cent), Adelaide (8 per cent), Perth (6 per cent), Canberra (2 per cent) and Hobart (2 per cent).

[Related: Melbourne CBD faces $110bn hit over next 5 years]

Investors undeterred by property price projections
Investors undeterred by property price projections
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The total value of residential dwellings rose by almost $450.0 billion in the March quarter to surpass $8.0 trillion for the first time, acc...

Consumers signalled stronger intentions towards home buying in May, as the big four bank has predicted house prices are set to increase by m...

Westpac Group has announced that it is creating more than 300 new roles (including lending and credit assessor roles) in Adelaide. ...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.