Property Price Growth

Property investors expect prices to keep rising

Property investors expect prices to keep rising and want to work with qualified advisers - national investor survey

Last year’s survey foreshadowed the property price growth that lay ahead – and it seems even more investors believe prices will keep rising this time around, too, according to the 2021 PIPA Annual Investor Sentiment Survey.

The national annual survey, which gathered insights online from nearly 800 property investors during August, found that more than 76 per cent of investors believe property prices in their state or territory will increase over the next year – up strongly from 41 per cent last year.

Peter KoulizosPIPA Chairman Peter Koulizos said few people believed the positive investor sentiment in last year’s survey, even though history had showed 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,” Mr Koulizos 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.” 

 

Summary of key findings 

Investors still believe it’s a good time to invest

Nearly 62 per cent of investors believe now is a good time to invest in residential property, which is down from 67 per cent in 2020, and may be due to high property price growth as well as significant lockdowns taking place at the time of the survey.


Fewer investors selling  

The pandemic continues to make it less likely that investors will sell a property over the next 12 months, according to 59 per cent of respondents (down from 71 per cent last year). However, about 18 per cent (up from seven per cent in 2020) said it had made them more likely to sell. 

Sunshine State offers best investment prospects 

 Queensland has emerged as the winner by a serious margin with a staggering 58 per cent of investors believing the Sunshine State offers the best property investment prospects over the next year – up from 36 per cent last year. New South Wales was second at 16 per cent (down from 21 per cent in 2020) and Victoria was third at 10 per cent, down significantly from 27 per cent last year.  

Regional and coastal markets in growing demand  

While investors continue to tip metropolitan markets as offering the best investment prospects at nearly 50 per cent (but down from 61 per cent in 2020), regional markets are in favour with 25 per cent of investors (up from 22 per cent) as well as coastal locations with 21 per cent of survey respondents (up strongly from 12 per cent last year). 

Lending and the economy remain top concerns for investors

The two leading concerns of the investors surveyed were gaining access to lending and Australian economic conditions – the same situation as last year.  

Investors seeking out qualified advisers 

Virtually all (92 per cent) investors continue to believe that any provider of property investment advice should have completed formal training or education. About 35 per cent of investors have sought the services of Qualified Property Investment Advisers or QPIAs. 

Submitted by: Property Investment Professionals of Australia (PIPA)