The 2022 PIPA Annual Property Investor Sentiment Survey was conducted in August 2022 and surveyed Australia’s existing and aspiring property investors to reveal the mood, confidence, and key trends underlying the Australian property investment market.
Summary of key findings:
Cooling investor sentiment
58% of investors believe that now is a good time to invest in residential property, which is down from 62% in 2021, and down significantly from the 67% recorded in 2020.
Investors return to metro markets
The pandemic-induced pandemonium for regional markets is dissipating with nearly 56% of investors tipping metropolitan markets as offering the best investment prospects (up from 50% last year). Regional markets remained in favour with 23% of investors (down from 25%), with coastal locations falling to 15% from 22% last year.
Investors are seeking out qualified advisers
90% of investors continue to believe that any provider of property investment advice should have completed formal training or education.
Property investors remain mostly optimistic but fewer looking to buy
About 58% of investors believe that now is a good time to invest in residential property, which is down from 62% in 2021, and down significantly from the 67% recorded in 2020.
About 37% of investors purchased a property over the past 12 months, up from 29% last year and the year before. Some 37% of investors are looking to purchase a property in the next six to 12 months, up from 35% in 2021, but well down on the 44% recorded in 2020.
The majority of survey respondents own one or two investment properties – in-line with historical averages. Nearly 22% of survey respondents own one property and nearly 25% own two. About four per cent of respondents had yet to buy an investment property. That said, there was good representation from first-time investors. Of all respondents who purchased in the past 12 months, about 16% purchased their first investment property in the year – the same percentage as last year but well down on the 29% recorded in 2020.
Of these first-time purchasers, 96% purchased an existing property (up from 81% last year) while just 2% purchased new or off-the-plan (down from 19% in 2021) and only 1% had purchased vacant land over the past year.
Among the first-time investors, about 29% (down from 37% last year) identified as rentvestors, with 45% of all investors indicating they would consider rentvesting personally.
Around 31% of property investors have some form of idea, plan, or strategy around their investing, however, 22% each said they had a “rough” or “fair” idea of their investment plans.
Please click on the links below to see the findings of the PIPA Annual Property Investor Sentiment Survey:
The 2022 PIPA Annual Property Investor Sentiment Survey of 1,618 investors was conducted online in August 2022
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