Top 5 property investor trends for 2021-22
With house prices going gangbusters in the first half of 2021, is it still a good time to buy
property? According to a recent survey, investor sentiment is still strong, with much of the nervousness associated with COVID-19 seeming to have disappeared. The 2021 PIPA Property Investor Sentiment Survey, which gathered insights from 800 property investors across the country in August, found more than 76% of investors believed property prices in their state or territory would increase over the next 12 months.
“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,” said PIPA Chairman Peter Koulizos.
The survey identified 5 top trends that should define the investor market in 2022.
- Most investors believe it’s a good time to invest
This year’s survey found that nearly 62% of investors believe that now is a good time to invest in residential property, which is a tad down from 67% in 2020.
PIPA says that dip in confidence may be due to the high property price growth this year as well as significant lockdowns taking place at the time of the survey.
- The sunshine state looks to be the property hotspot
More than half of those surveyed feel Queensland will be the investment hotspot in 2022. There is still strong support for NSW and Victoria but not to the same extent as seen in Queensland. Much of this investment may be due to the excitement of the 2032 Olympics announcement. There has also been a noticeable increase in interstate migration to Queensland.
- Regional and coastal markets continue to grow in demand
While investors still believe metropolitan markets offer the best investment prospects at nearly 50% (down from 61% in 2020), regional and coastal markets are closing the gap. A quarter of property investors now favour regional markets (up from 22%), while 21% of survey respondents have their eye on coastal areas (up strongly from 12% last year).
- Fewer investors looking to sell
Low market supply has led to robust price growth over 2021 and investors expect this to continue into 2022. Investors are looking to hold onto their properties. Low stock should lead to strong price growth continuing into 2022.
- Almost three-quarters of property investors use a mortgage broker
Just 17% of respondents secured their last investment loan directly via a bank, while 4% used a non-bank lender.
The vast majority (72%) of respondents secured their loan through a broker, a slight increase on last year’s figure of 71%.
And 72% of respondents said they’d use a broker to finance their next investment loan. It just goes to show that it doesn’t matter how far you are on your property journey – whether you’re a first home buyer, refinancer or savvy property investor – we can help you every step of the way.
So if you’re looking to add to your property portfolio, looking for a change of scene, or keen to crack into the market, get in touch today.
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