Flat property prices and rising rental yields are among some of the market attributes expected to entice investors back into the property market over the coming 12 months.
A straw poll conducted by Smart Property Investment’s sister publication Real Estate Business, found just over half of real estate agents (50.2 per cent) expect investors to be the most active market segment in the year ahead.
Mortgage Choice chief executive Michael Russell said investors are in a prime position to enter the market.
“Looking forward, the fundamentals for property investment are clearly enticing; flat property prices, rising rents, falling vacancy rates, housing undersupply and a further deterioration in affordability,” he said.
“Property listings are above average, and investors are in a good position to buy. Those who do will not need to look far for a good tenant.”
But RP Data’s research analyst Cameron Kusher said the lack of capital growth prospects could send investors towards other investment options.
“Property investors have become accustomed to strong capital growth over a short period of time in recent years,” he said.
“With the prospects of strong capital growth limited for the moment, I suspect we won’t see much investor activity.”