- 68% of property investors said pandemic has had a minimal impact on investing plans
- 16% said pandemic has increased their appetite to invest
- Investors more optimistic about Perth and Brisbane compared to Sydney and Melbourne
The latest sentiment survey by Momentum Wealth, a Perth-based property investment consultancy, has found the pandemic has had a minimal impact on property investors’ confidence.
The annual survey, which was completed by 467 investors nationally, found that 68% of respondents stated that the pandemic has not impacted their real estate investing plans. 16% said the pandemic had made their likelihood to invest increase with 43% of these respondents adding they intend to invest within 12 months.
Jennifer Wakeman, Momentum Wealth General Manager, said that given its long term performance as an asset class, real estate is a natural affinity for Australian investors.
“Historically, property has shown lower volatility than other asset classes, especially during periods of economic uncertainty and instability, and the rising prices we are seeing across Australia’s capital city markets is further evidence of this.”
Jennifer Wakeman, Momentum Wealth General Manager
A range of stimulus measures initially brought in to cushion the blow of the pandemic on the economy and historically low interest rates has resulted in a window of opportunities for investors, according to Ms Wakeman.
“The cost of borrowing money decreased as a result of interest rate cuts, and those fortunate enough to have secure income are able to leverage these conditions to purchase or invest in property,” she said.
“Despite the economic downturn, job losses have largely been constrained to a few industries and most of these jobs have since been recovered. The strengthening of the economy has also led to many people being in a better financial position than was first predicted.”
However, given that investor sentiment has been sustained through the pandemic, this confidence has not been extended across the entire market.
Due to the international border closure, demand for property in cities heavily reliant on immigration in Sydney and Melbourne has softened especially in the inner-city markets. As a result, other capital cities are catching the attention of investors.
“Investor activity is turning away from Sydney and Melbourne and is instead focussing on cities with tighter rental markets and greater affordability, like Perth and Brisbane,” said Ms Wakeman.
“Investors who enter the Perth and Brisbane markets will benefit from the forecast upswing and the current affordability and tight rental markets are presenting dual benefits for investors.”