The Property Investment Professionals of Australia (PIPA) has released their annual investor survey, detailing how property investors feel about the state of the industry and revealing the best region to invest in property in Australia.
The research spoke to 800 investors and found that 76% expected further property prices rises in the next year, a notable rise on the 41% from the 2020 survey.
62% said that this was a good time to invest in property, despite the huge price rises that have been seen in the last 12 months, with Queensland coming out as the most popular destination for investors.
Peter Koulizos, CEO of PIPA, said that there were two key takeaways from the survey results.
“Firstly, it was that property investors were quite optimistic last year, in that property prices would rise and it wasn’t going to be the end of the world with Covid-19,” said Koulizos. “That’s come to fruition, with property prices and rents very high, in comparison to the recent past.”
“Secondly, it was that property investors are very keen to have qualified property investment advice from people who uphold professional standards and have proper qualifications.”
The number of investors in the market has grown precipitously, especially as a segment within the market as first home buyers have dropped off.
“What we’ve seen is a big change from the beginning of the year,” said Koulizos. “Because there’s a lot fewer first home buyers as the most of the incentives, especially those from the Federal Government, have gone.”
“Their places have been taken by property investors. There’s a lot of second homes being built, some as investments but also as holiday homes, which is why lifestyle locations close to the capital cities are seeing exceptional capital growth and increase in property rents.”
There is, according to submissions to the new Housing Affordability Parliamentary Inquiry which opened last week, a lack of investment in property and new properties being built, which is stifling Regional Australia.
With rents in Regional Australia now growing at a huge rate, there is a gap in the market for investors who can get stock onto the market and rented to tenants.
“One of the issues is that HomeBuilder created instant demand overnight,” explained Koulizos. “But you can’t create that supply overnight. If we want to make property more affordable, especially for renters, then you need private investors to get into the market to offer that sort of product.”
