The majority of property investors are remaining upbeat despite COVID-19, with 67% believing now is a good time to invest in residential property, according to a new survey.
The 2020 PIPA Property Investor Sentiment Survey gathered insights from nearly 1,100 property investors in August, with the key finding that the majority of property investors remain optimistic about the months ahead.
Indeed, two-thirds of investors who participated in the survey said they believe now is a good time to invest in residential property.
Additionally, 77% of investors said any concerns about potential falling house prices won’t cause them to put their investment plans on hold.
Tim Lawless, head of research at CoreLogic, the nation’s largest provider of property information and analytics, echoed the investors’ positive sentiments earlier this month.
“Through the pandemic to date, housing values nationally have slumped by only 2% and housing activity has trended only about 5% lower than a year ago over the past three months,” Mr Lawless said.
“For people with confidence in their own financial circumstances and household balance sheets, arguably this is a good time to be considering a home purchase thanks to the low cost of debt and certainty that rates will remain low for at least the next few years.”
What are investors likely to do next?
Well, almost half of the investors surveyed by PIPA (44%) said they are looking to purchase a property in the next six to 12 months.
“Plus, about 71% of investors have indicated that the pandemic has made it less likely they will sell a property over the next year, which is another factor that will help to underpin property prices,” added PIPA Chairman Peter Koulizos.
Where are investors looking?
It seems many property investors are beginning to look further afield.
More than 40% of those surveyed intend to buy an investment property in a different state or territory to the one that they currently live in.
Queensland is definitely in the sights of investors, with 36% saying it offers the best investment prospects over the next year, followed by Victoria (27%) and New South Wales (21%).
But it’s not just investment properties that respondents were keen on interstate.
One in six investors (17%) said the pandemic has made them consider moving to another location altogether, with regional areas set to benefit the most due to the improved lifestyle factors they offer and an increasing ability to work from home.
Investors indicated their top locations to migrate were regional NSW (21%), regional Queensland (18%), Brisbane (16%) and regional Victoria (14%).
Coastal locations in particular are on the rise – up to 12% from 8% last year.