A recent national survey conducted by Property Investment Professionals of Australia (PIPA ) has concluded that 76% of property investors believe property prices in their state or territory will be worth more than they currently are in 12 months’ time.
This signifies a huge spike in investor confidence in the property market. The outlook for the residential property sector benefitted from targeted stimulus like the Homebuilder program and record low mortgage rates.
The resilience in property confidence is encouraging and is consistent with much of the economic data released over the past few months. Compared to the national lockdown of 2020, business conditions, consumer confidence and the labor market are all performing significantly better through the current lockdown. This is due to many businesses adapting their working models and households are managing well. Ongoing government support, combined with the vaccination rollout, has maintained confidence that economic activity will rebound quickly once restrictions lift.
It’s not just investors who are bullish about the residential property market outlook. Property experts right across the country are predicting strong growth. This isn’t surprising given housing prices have risen by 17.4 per cent over the past year, the strongest annual gain since 2002.
Reserve Bank of Australia Governor Philip Lowe – whose board sets the nation’s interest rate – said that housing prices are a staggering 19 per cent higher than they were before the pandemic.
The quarter to June 30 recorded the strongest quarterly growth on record. Smart investors are currently entering the market in record numbers.
If you need help joining them, reach out to the NIA team today.