Tags :BusinessConsumerCoronavirusEconomyPROPERTYReal estate
COVID-19 has made it more profitable to work remotely so property investors are looking to invest within Australia’s rural and regional centers.
The 2020 Property Investment Professionals of Australia (PIPA) Investor Sentiment Survey revealed that current market conditions are challenging for investors.
According to the survey 67% of property investors believe that this is a good time to invest in property. This is a decrease of 82% from last year.
Surveyed by 77 per cent, investors said they don’t worry about the possibility that house prices will fall. 44 percent plan to buy within the next six to twelve months.
Chairman of PIPA Peter Koulizos stated that investors were cautiously optimistic in the worst pandemic.
“While there is no doubt that 2020 was one of the most difficult years in living memory for anyone on this planet, property investors have shown resilience to unprecedented uncertainty,” Mr Koulizos explained.
“However, the market for property continues to show its resilience with prices materially stable across most parts of the country.”
Despite investors’ enthusiasm to buy, the report found that they were more likely to retain property assets they might have sold than they were to purchase.
“About 71% have indicated that the pandemic has made it less likely to sell a property over the next twelve months,” Mr Koulizos stated.
Ben Plohl, PIPA member and buyer’s agent, stated that people are more inclined than metropolitan markets to support regional markets.
“We have been active over the last months in parts of regional New South Wales, and region Victoria because there are favorable market conditions,” Mr Plohl stated.
“The survey results also indicate many of these areas will receive many new residents over the coming months, which could strengthen some regional real estate markets.”
A majority of investors believe that more education should be provided about the risks involved in investing in real estate. 93% also believed that advice providers should be trained.
Mr Koulizos stated that “About 90% of investors believe the property investment industry should be licensed & regulated in the exact same way as financial planners and mortgage brokers”
Australia’s August 2020 Property Prices*
|City:||Quarterly changes||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
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