MORE people are choosing to park their money in established houses over new apartments, reflecting fears about oversupply in high density markets like inner-city Brisbane.
A new survey has found the number of investors looking to buy a house in the next six to 12 months has jumped from 59 per cent a year ago to 67 per cent in 2017.
In comparison, the proportion of investors looking to buy apartments has fallen to 9.3 per cent, according to the third annual Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey.
Meanwhile, the number of investors planning to buy existing or established properties continues to rise â€” to 92 per cent from 87 per cent.
The national survey of 742 property investors found more than 70 per cent think now is a good time to invest in property, despite concerns about stricter lending conditions and dwelling oversupply.
A new survey has found the number of investors looking to buy a house in the next 6-12 months has jumped.
Brisbane remains the top pick for investors for the second year in a row, but the city has lost some of its appeal, with the number of investors favouring it falling from 49 per cent to 43 per cent over the past year.
PIPA chair Ben Kingsley said investors were attracted to Brisbane’s affordability and the potential for attractive yields.
“Brisbane and southeast Queensland is still offering an attractive rental yield, as opposed to Melbourne and Sydney where rental yields are a historic lows,” he said.
Mr Kingsley said while there was plenty of choice when it came to apartments, most of Brisbane’s established properties offered record low rental yields.
“Once the economy and confidence in the business sector improves and unemployment reduces, the reality is Brisbane’s best days in this cycle are ahead of them,” he said.
PIPA’s 2017 PROPERTY INVESTOR SENTIMENT SURVEY – KEY STATS
– 70% of investors believe now is a good time to invest in property
– 61% of investors are looking to purchase in the next 6-12 months
– 43% of investors confirm changes to investor lending policies have impacted them
– 75% of investors are not worried about possible changes to negative gearing
– 90% of investors believe people who recommend property investment should be regulated and licensed
Elizabeth Tilley, The Courier Mail republished in The Weekly Times, 28 September 2017