While the Australian economy continues to recover from the pandemic, more than 70 per cent of property investors believe it is already a good time to buy.
New research suggests that rather than being rattled by the last twelve months, Australian property investors are more confident than ever.
In a mid-May survey conducted by the Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA), 80 per cent of property investors said their investment intentions for the next six to 12 months were not affected by the coronavirus crisis.
Nearly 60 per cent of respondents indicated that the pandemic had not made them change their investment plans over the next six months, with a further 18 per cent saying the crisis had actually made it more likely they would purchase a property over that timeframe, PIPA Chairman Peter Koulizos said.
The survey found that while 36 per cent of investors had experienced a loss of income during the pandemic, 91 per cent did not apply to pause their mortgage repayments.
Of the 1877 investors surveyed by the PIPA and PICA, only 5 per cent said the pandemic made it more likely for them to sell a property over the next six to 12 months.
“What’s more telling is that more than 30 per cent said they were less likely to sell over the same period because of the pandemic, with 63 per cent indicating no change at all to their plans,” PICA Chairman Ben Kingsley said.
According to Koulizos, “It’s clear that record low-interest rates, as well as the resilient nature of property during turbulent times, are inspiring investors to continue with their plans.”
“Investors are confident about the times ahead, with many intending to purchase over the next year to take advantage of the burgeoning buyer’s market.”
Fergus Halliday, Smart Property Investment, 31 May 2021