PIPA Survey Aus 2021
Which capital offers the best investment prospects, according to PIPA Survey. Image supplied
  • PIPA's annual survey of 800 investors found them to be upbeat
  • Best areas in Australia were the Sunshine State, regional and coastal areas
  • Lending and the economy, coming out of Covid, were the top concerns

Property investors believe prices will keep rising across Australia, according to the 2021 PIPA Annual Investor Sentiment Survey, which released its results today.

The survey gathered insights online from nearly 800 property investors during August, finding 76% of investors believing property prices in their state or territory will increase over the next year – up strongly from 41% last year.

PIPA Chairman Peter Koulizos said few people believed the positive investor sentiment in last year’s survey, even though history had shown the resilience of real estate time and time again.

Peter Koulizos
Peter Koulizos, Chair of PIPA. Image supplied.

“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,”

Peter Koulizos, PIPA

“That said, last year’s survey did forecast the strong property price growth that we have since experienced, it’s just that not many people believed us at the time.”

Good time to invest in property?

Good time to invest
Source: PIPA

 

This year’s survey found that nearly 62% of investors believed now was a good time to invest in residential property, which is down from 67% in 2020, and may be due to the high property price growth this year as well as significant lockdowns taking place at the time of the survey.

Nearly 21% of respondents (up from 17%) said the pandemic had made them consider moving to another location with the main reasons being:

  • improved lifestyle factors (78% – same as last year),
  • working from home in the future (42%, down from 46%), and
  • housing affordability (36%, down from 40%).

25% of respondents said their motivations to move included not wanting to live in crowded cities anymore as well as wanting to live somewhere that had fewer coronavirus cases and lockdowns.

Sunshine State outshines others

Queensland was the favoured state for property investors, according to the survey.

“A staggering 58% believe that the Sunshine State offers the best property investment prospects over the next year – up from 36% last year,” said Mr Koulizos.

“New South Wales was second at 16% (down from 21%) and Victoria was third at 10%, which is down significantly from 27% last year.”

The number of investors who see Brisbane as the state capital with the best investment prospects has also soared compared to last year’s results – up to 54% compared to 36% in 2020.

Mr Koulizos said Southeast Queensland was the beneficiary of billions of dollars of major infrastructure projects that were set to transport the region, plus Brisbane was recently named the host of the 2032 Olympic Games.

Best investment locations, outside the cities

Regional PIPA
Source: PIPA

Regional moves

Regional markets continued to be in favour with 25% of investors (up from 22%), while interest in coastal locations has risen to 21% from 12% last year.

According to the survey, while nearly 50% of investors say metropolitan markets offer the best investment prospects, this was down from 61% last year.

Summary of findings

  1. Good time to invest, said 62% of investors
  2. Few investors selling
  3. Sunshine State best location for investors
  4. Regional and coastal areas attractive
  5. Lending and economy were top concerns
  6. Using professionals when investing, is key

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