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- The 2021 PIPA Annual Investor Sentiment Survey finds that the majority of investors anticipate property prices will rise in the future
- More than 76 per cent of investors anticipate property values in their state or territory will rise over the next year, up from 41 per cent last year
- According to this year’s study, almost 62 per cent of investors feel now is a good time to buy residential property, down from 67 per cent in 2020
- 58 per cent believe that the Sunshine State offers the best property investment prospects over the next year
- Approximately 43 per cent of investors in the survey claim that their property investment or portfolio is profitable
Last year’s study predicted future increases in property values, and the 2021 PIPA Annual Investor Sentiment Survey finds that even more investors anticipate prices will rise in the future.
More than 76 per cent of investors anticipate property values in their state or territory will rise over the next year, up from 41 per cent last year, according to the nationwide annual poll, which gathered insights online from over 800 property investors throughout August.
According to this year’s study, almost 62 per cent of investors feel now is a good time to buy residential property, down from 67 per cent in 2020.
This might be attributed to this year’s substantial property price increases as well as major lockdowns, according to the survey.
Few people accepted the favourable investor mood in last year’s poll, according to PIPA chairman Peter Koulizos.
“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.”
This year’s poll, according to Mr Koulizos, generated the largest ever margin in terms of the property investment location that investors feel provides the most potential in the coming year.
“Queensland has certainly emerged as the winner in a serious way,” he said.
“A staggering 58 per cent believe that 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, which is down significantly from 27 per cent last year.”
Mr Koulizos stated that Southeast Queensland will benefit from billions of dollars in significant infrastructure projects aimed at improving transportation in the region, as well as Brisbane’s recent designation as the host city for the 2032 Olympic Games.
A buying trend that began in last year’s poll looks to be gaining traction, with investors increasingly exploring outside of urban regions.
According to the poll, over half of investors believe urban markets provide the best investment opportunities, down from 61 per cent last year.
Regional markets continue to be popular with 25 per cent of investors (up from 22 per cent last year), while interest in coastal areas has increased to 21 per cent from 12 per cent last year.
While investors may be looking to buy, they are less keen to cash out, with 59 per cent intending to do so, compared to 71 per cent in last year’s poll.
Approximately 43 per cent of investors in the survey claim that their property investment or portfolio is profitable.
More than 60 per cent of investors with negative cash flow expect their portfolio will become favourably geared in the next five years.
