NSW consumer confidence is strong and property investment is increasing in popularity, a leading sentiment survey has revealed.
The Mortgage Choice annual NSW Consumer Sentiment Survey saw a seven per cent increase since last year in the proportion of respondents who see property as a safer form of investment.
“With ongoing financial volatility here and overseas, NSW respondents are increasingly viewing property as a safer haven than shares,” acting head of corporate affairs Belinda Williamson said.
Sixty-four per cent of NSW survey respondents indicated a preference for property and 61 per cent believed property prices will either remain stable or increase over the next year.
The main motivations for respondents to purchase property included setting themselves up financially for the future (56 per cent, a 7 per cent increase); as an entrance to the property market (31 per cent, an 11 per cent increase); and rising rent prices (26 per cent, a 3 per cent increase).
“It is interesting to see the impact rising rental costs is having on people’s decision to take the leap into the property market,” Ms Williamson said.
Almost half (48 per cent) of respondents believe that tight vacancy rates and rising rents are having an effect on property prices.
Interest rates were also found to influence property buying decisions, with 33 per cent saying they would be “more likely” to buy if there were more drops within the next six months.
Sixty-six per cent said a drop in interest rates would not affect their decision.