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Property investors across Australia expect market prices to continue to rise according to the latest Property Investment Professionals of Australia survey.
The PIPA Annual Investor Sentiment Survey demonstrated that even more investors than last year believe prices will keep rising after the 2020 survey foreshadowed the property price growth that lay ahead.
The national annual survey, which gathered insights online from nearly 800 property investors during August, found that more than 76 percent of investors believe property prices in their state or territory will increase over the next year.
This is up from 41 percent last year.
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,” he said.
“That said, last year’s survey did forecast the strong property price growth that we have since experienced, it’s just that not many people believed us at the time.”
This year’s survey found that nearly 62 percent of investors believe that now is a good time to invest in residential property.
This was down from 67 percent in 2020 and may be due to the high property price growth this year as well as significant lockdowns taking place at the time of the survey.
Nearly 21 percent of respondents said the pandemic has made them consider moving to another location with the main reasons being improved lifestyle factors, working from home in the future, and housing affordability.
However, about 25 percent of respondents said their motivations to move included not wanting to live in crowded cities anymore as well as wanting to live somewhere that had fewer coronavirus cases and lockdowns.
Fewer investors are looking to sell a property this year at 59 percent compared to 71 percent of survey respondents last year.
Mr Koulizos said part of the reason for the uplift in property prices over the past year was the continued low levels of supply in most locations around the nation.
“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,” he said.
Mr Koulizos said one of the most important results in this year’s survey was the fact that about 92 percent of investors believe that any provider of property investment advice should have completed formal training or education.
“When markets are running hot it is more important than ever that buyers work with qualified property investment experts.” he said.
“Unfortunately, at present, there is no legal requirement for people to have any training before calling themselves a property investment ‘adviser’.
“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.”
The Horsham Times, Horsham, Page 23, 24 September 2021