More than 58% of investors believe Queensland offers the best prospects for real estate – up 61% from a year ago – according to a new poll.
The results come from the eighth annual Real Estate Investment Professionals of Australia (PIPA) Real Estate Investor Sentiment Survey, which gathered information online from 786 real estate investors in August.
According to the annual PIPA 2021 Property Over 76% of investors believe real estate prices in their state or territory will rise over the next year, up from 41% last year, according to investor sentiment survey .
This comes after the escalating growth in house prices. House prices rose 15.8% in the first eight months of the year and 18.4% above year-ago levels, the fastest annual growth rate since 1989 , according to CoreLogic.
High real estate values - which are expected to continue to climb next year – along with ongoing lockdowns may also explain the drop in the number of investors who believe the time is right to invest in residential real estate.
The PIPA survey found that nearly 62% of investors believe the time is right to invest in residential real estate, up from 67% in 2020.
On the flip side, nearly a fifth of investors (18%) said the pandemic made them more likely to sell their properties this year, significantly up from 7% in 2020. PIPA suggests that could also be the result of rising prices.
Almost 21% of those surveyed (up from 17% in 2020) say the pandemic has caused them to consider moving to another location.
The main reasons for this have been found:
- Improved lifestyle factors (78 percent – same as last year)
- Work from home in the future (42% vs. 46% in 2020)
- Housing affordability (36% vs. 40% last year)
However, around 25% of those polled said their motivations for relocating included no longer wanting to live in crowded cities as well as wanting to live in a place where there were fewer cases of coronavirus and lockdowns.
As investors continue to view metro markets as offering the best investment prospects (at nearly 50 percent, but down from 61 percent in 2020), regional markets are increasingly favorable.
A quarter of investors were looking for regional locations (up from 22 percent), while interest in coastal locations climbed to 21 percent from 12 percent last year.
Sunshine State Property Winner
PIPA Chairman Peter Koulizos revealed that this year’s survey showed the majority of investors believe Queensland is a ‘winner’ for property investor activity this year.
“58% think the Sunshine State offers the best prospects for real estate investment over the next year – up from 36% last year,” Koulizos said.
“New South Wales was second at 16% (up from 21% in 2020) and Victoria was third at 10%, which is significantly down from 27% last year.”
The number of investors who view Brisbane as the state capital with the best investment prospects has also risen sharply from last year’s results – up to 54% from 36% in 2020 – according to the results of the investigation.
Mr Koulizos said south-east Queensland was the beneficiary of billions of dollars in major infrastructure projects that were to transport the region, and Brisbane was recently named host of the 2032 Olympics.
Queensland has also been less affected by the extended shutdowns than the larger states of NSW and Victoria.
“All of these factors, along with the affordability of real estate in South East Queensland and high interstate migration, are some of the reasons investors are so bullish about market conditions there,” did he declare.
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Annie Kane is the managing editor of The Adviser and Mortgage Business.
In addition to writing about the Australian brokerage industry, mortgage market, financial regulation, fintechs and the broader lending landscape – Annie is also the host of Elite Broker and In Focus podcasts and The Adviser Live webcasts. .