Investors confidence up, taking a shine to sunshine state

Sep 2021Karen Millers

Property investor sentiments are up in 2021, with investors anticipating further increases in property prices and favouring Queensland more than ever.

According to PIPA’s 2021 Annual Investor Sentiment Survey, which collected data from almost 800 property investors across Australia, more than 76% of investors think prices in their state or territory are set to increase over the next 12 months, Up from 41% in 2020.

“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,” said Peter Koulizos, Chairman of PIPA.

62% of respondents believe now is a good time to invest in residential property, however, which is down marginally from 67% in 2020, likely because of higher prices and ongoing lockdowns.

While, 29% of investors responded that the pandemic has made it less likely that they will buy in the next 12 months, up from 21%.

While more investors responded that the pandemic has made them look at moving to a new location, at 21% up from 17%.

With improved lifestyle factors still the main reason, at 78%, followed by further visions of working from home at 42%, down from 46%, with housing affordability at 36%, down from 40% in 2020.

Though 25% of those surveyed also cited the desire to move away from cities and the associated higher percentage of COVID-19 cases and resulting lockdowns.

58% of respondents named Queensland as the best state for investment prospects in the next 12 months, compared to 36% last year.

Brisbane also dominated as the best state capital for investment at 54%, up from 36% in 2020. While Sydney came in at 13%, Melbourne 12%, Perth 9%, Hobart 3%, Canberra 2%, and Darwin 1%.

New South Wales was second to Queensland, at a significantly lower share of 16%, down from 21%, while Victoria followed at 10%, down from 27% in 2020.

Beyond just the desire to take advantage of the coastal lifestyle offered by the Sunshine State, Queensland has also seen billions of dollars invested into infrastructure, with more to come as Brisbane prepares for the 2032 Olympic Games.

“All of these factors, as well as the affordability of property in Southeast Queensland and strong interstate migration, are some of the reasons why investors are so optimistic about market conditions there,” said Koulizos.

Regional markets are increasingly drawing the eye of investors, with the amount of investors saying metropolitan markets offer the best prospects dropping from 61% to 50%.

With regional markets growing from 22% to 25% and coastal locations climbing from 12% to 21%.

Meanwhile, fewer investors are looking to sell this year, at 59% compared to 71% in 2020, contributing to the lower supply that is driving up prices.

“With a decrease in the number of investors indicating they intend to sell over the short-term, it seems unlikely that this boom market cycle is going to change anytime soon,” added Koulizos.

The survey also revealed that around 92% of investors surveyed providers of property investment advice should have completed some form of formal training or education, despite a lack of legal requirements nationally.

“That’s why, whether investors are looking for a qualified adviser, mortgage broker or accountant – essentially any professional involved in the property investment process – they should look for a Qualified Property Investment Adviser or the QPIA logo as the best assurance that they are dealing with a trusted and educated professional,” concluded Koulizos.

 

Hannah Page, Australian Property Journal, 20 September 2021
https://www.australianpropertyjournal.com.au/2021/09/20/investors-confidence-up-taking-a-shine-to-sunshine-state/

Are you watching the clock

Apr 24

Is now the right time?” It’s a commonly asked question by both buyers and sellers in the property game, and while real estate experts often caution against trying to time the market, there are several factors that can help you decide if the market is ripe for buying or selling.

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