Investors have renewed confidence and are returning to the property market, according to new research by Property Investment Professionals of Australia, which finds a surge in buyer sentiment in recent months, with corresponding price increases.
PIPA’s survey has found that 82% of investors believe now is a good time to buy residential property and 48% plan to buy in the next 6-12 months.
PIPA chair Peter Koulizos says that, combined with spikes in activity from other buyers (particularly first-timers), indicates that a market recovery is in full swing. A revival in investor activity is likely to put upward pressure on prices.
The PIPA research mirrors the findings of the ANZ Property Council Survey, which reported a rise in investor confidence for the first time in 18 months.
“Signs of recovery have been emerging for some months, with sentiment turning around since May,” ANZ Senior Economist Felicity Emmett says. “Clearance rates have picked up sharply, prices have been rising strongly and housing finance is starting to pick up.”