If you are predicting property prices will keep increasing, you’re in agreement with 76 per cent of investors who believe further rises will continue over the next year.

The Property Investment Professionals of Australia (PIPA) gathered insights from 800 property investors in August.

PIPA Chairman Peter Koulizos said few people believed the positive investor sentiment in last year’s survey, even though history had shown the resilience of real estate time and time again.

“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.

While investors continue to tip metropolitan markets as offering the best investment prospects at nearly 50 per cent (but down from 61 per cent in 2020), regional markets are in favour with 25 per  cent of investors (up from 22 per cent), as are coastal markets with 21 per cent of investors (a significant jump from last year’s 12 per cent).

Despite demand and competition driving prices upward and the popular belief that buying in a challenging market is the right time to purchase, investors believe it is still a good time to invest with nearly 62 per cent of them viewing the residential market as a great investment decision right now.

This is down from 67 per cent in 2020, and may be due to high property price growth as well as significant lockdowns taking place at the time of the survey.

The pandemic continues to make it less likely that investors will sell a property over the next 12 months, according to 59 per cent of respondents (down from 71 per cent last year). However, about 18 per cent (an 11 per cent increase from last year) said it had made them more likely to sell.

Southern Highlands Express, Bowral, Page 13, 21 September 2021