Despite declining housing prices in Sydney and Melbourne, it seems that some investors still feel optimistic.
The results of the 2018 Property Investor Sentiment Survey were posted on 27 December, revealing that 52.6 per cent of the 1800 respondents thought that now was a good time to invest in residential property, while also believing that the market would fall further or stay flay in 2019. Slightly under a quarter felt the opposite, and the rest were unsure.
Understanding The Survey
Although just over half of the respondents thought now was a good time to buy, only around 11 per cent of them thought prices might increase, and most of those thought they wouldn’t go up by any more than 5 per cent. Around 20 per cent thought that prices would hold steady – but nearly 65 per cent thought further declines were more likely.
Around 82 per cent of the respondents are already investors, which suggests they are used to the vagaries of the market. This year’s responses are less confident than those of the 2017 survey, however, so it’s not a surprise that only 42.1 per cent of respondents said they were considering investment purchases in 2019.
The majority had property interests in the Sydney, Melbourne, Brisbane and regional markets, with less than 9 per cent holding investments in Perth. (Your Investment Property reported in December that the Perth property market is currently looking favourable for investors.)
When choosing locations for the best capital growth over the next five years, Perth only scored a3.8 per cent, however. Instead, 70 per cent of respondents saw growth potential in the South East Queensland market, with Brisbane at 44.5 per cent, Sunshine Coast at 13.6 per cent, and the Gold Coast on 11.5 per cent.
The survey contains a lot of other insights into how Your Investment Property readers are feeling about property-related investment, finance and future prospects. These trends aren’t the sole measure for making investment decisions, but they’re an informative view into market trends.
If you are thinking of buying or selling property or you are unsure of how well your property portfolio is positioned in the current changing market, contact United Global Capital today on 03 8657 7640 or email [email protected] for a no cost, no obligation consultation and learn how you can position yourself for success.