A peak industry body has found property investors feel bullish as they enter autumn 2017.
A national poll of more than 1,000 property investors by the Property Investment Professionals of Australia (PIPA) has found the vast majority are upbeat about the 2017 market.
According to the survey findings, released in February, more than half of PIPA members (54%) are “very optimistic” about business conditions while another 43% are “optimistic”.
Among report findings illustrating today’s investor sentiment:
- A massive 72.6 % of those polled say media talk of a property price ‘bubble’ has not caused them to put investment plans on hold;
- More than three out of four (75.4%) say concerns of oversupply has not caused them to put investment plans on hold and;
- 5% say proposals to change negative gearing rules and reduce CGT exemptions has not caused them to put investment plans on hold.
Even the spectre of tighter investor lending policies and interest rate rises is not dampening the positive mood of Aussie property investors.
This is, of course, excellent news for anyone already in the market and for those considering entering this year.
But what I find particularly interesting about this PIPA report is it highlights Queensland, particularly Brisbane, is currently seen as the most attractive metropolitan hub in Australia for property investment.
Exactly half (50%) of the 1,004 polled investors (502) think Brisbane offers the best investment prospects of all capital cities.
Why is this, you may ask?
I have worked in this dynamic residential real estate industry for 30 years and know first-hand capital growth always comes in cycles.
And, in my opinion, it is very much Brisbane’s turn for that cyclical lift.
There has been frenzied buying activity in Sydney for some years but Queensland has not really had its time since the GFC … yet.
In fact, since 2008, Brisbane has been really, really flat.
But we have two or three years ahead when there will be very good opportunities, not across entire cities in southeast Queensland, but for buyers who choose street-specific assets in areas poised for strong capital value growth near big levels of government investment in Brisbane and the Gold Coast.
With prices for houses on land usually between $450,000 and $500,000, much lower than other states, and rental yields of 5% or higher, it is easy to see why well-researched investors are seeing Brisbane’s capital growth potential and are keen to invest in the next six to 12 months.
It is very important to build a diversified portfolio if your strategy is long-term investment.
A bit of new and a bit of old – some newly built properties and some established properties – and that is why our business is so unique and firmly anti-property marketing spruiker whose business model is only interested in selling their developers’ stock regardless of individual investors’ portfolio needs.
We are very happy to work with every investor – both those looking for new and those looking for second-hand properties – to help them find uniquely suitable property in a market poised to get hot.