Property investors are increasingly looking to buy in Australia’s regional or rural centres as work from home practices during COVID-19 make suburbs outside of major CBD’s more lucrative.
The annual 2020 Property Investment Professionals of Australia (PIPA) Investor Sentiment Survey found that investors were looking to be more creative during current market conditions.
About 67 per cent of property investors surveyed said they think now is a good time to buy property, down from 82 per cent the same time last year.
A whopping 77 per cent of investors also said any concerns about potential falling house prices won’t cause them to put their investment strategies on hold, with 44 per cent looking to purchase in the next six to 12 months.
PIPA Chairman Peter Koulizos said the mood from investors was cautious optimism during the worst of the pandemic.
“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,” Mr Koulizos said.
“However, at the current time, the property market has continued to show its resilience with prices materially stable in most parts of the nation.”
Despite the relative eagerness to buy, the report found that investors were also more likely to hold onto property assets that they may have otherwise sold.
“About 71 per cent of investors have indicated that the pandemic has made it less likely they will sell a property over the next year, which is another factor that will help to underpin property prices,” Mr Koulizos said.
PIPA member and buyer’s agent Ben Plohl said that sentiment towards regional markets was growing as the appeal of metropolitan markets weakens.
“We have been active in parts of regional New South Wales and regional Victoria over recent months because of the favourable market conditions in these locations,” Mr Plohl said.
“The survey results also show that many of these areas will be welcoming plenty of new residents in the months ahead, which will likely further strengthen property markets in some regional locations.”
An overwhelming majority of investors believed that more education is needed around the risks of investing property, and 93 per cent believed those providing advice should have some sort of formal training.
“About 90 per cent of investors believe the property investment industry should be regulated and licensed the same way financial planners, mortgage brokers and real estate agents are,” Mr Koulizos said.
Australia’s August 2020 Property Prices*
|City:||Quarterly change:||Median Value:|
|Sydney||– 2.1 per cent||$860,182|
|Melbourne||– 3.5 per cent||$667,520|
|Brisbane||– 0.9 per cent||$503,128|
|Adelaide||– 0.1 per cent||$444,021|
|Perth||– 1.6 per cent||$443,777|
|Hobart||+ 0.3 per cent||$490,743|
|Darwin||+ 1.0 per cent||$393,386|
|Canberra||+ 1.3 per cent||$636,324|
|National||– 1.7 per cent||$552,689|
*CoreLogic Data, median value includes homes and units
Stuart Marsh, Nine.com.au, 15 September 2020