Buyers more bullish about current market

The survey found 98 per cent of property investors have some form of idea, plan or strategy around their investing, while 26 per cent have a detailed and modelled plan designed to match long-term investment goals.

Furthermore, 82 per cent of investors believe that now is a good time to invest in residential property, which is up from 77 per cent in 2018.

Looking ahead, 48 per cent of people surveyed say they are looking to purchase property in the next six to 12 months. This is down slightly from 52 per cent in 2018.
Seventy-one per cent of those who are looking to invest in this time period are interested in purchasing an established house. Meanwhile, 6 per cent are looking at town houses/villas, 6 per cent at units/apartments, and 2 per cent at house-and-land packages.

Despite these results, PIPA chairman Peter Koulizos said the number of investors in the market has fallen dramatically, with 34 per cent of investors purchasing a property over the past 12 months, down from 43 per cent in the 2018 survey, and 47 per cent in the 2017 survey.

“The overwhelming majority of respondents are investment veterans who have purchased several properties in the past — 44 per cent hold two to four properties in their portfolio, while another 17 per cent hold five to 10. This was down on the 2018 numbers showing 45 per cent and 21 per cent, respectively.

“That said, there was good representation from first-time investors. Of all respondents who purchased in the past 12 months, 21 per cent purchased their first investment property in the year. Of these first-time purchasers, 75 per cent purchased an existing property (down from 83 per cent in 2018) while 16 per cent purchased new or off-the-plan (up from 14 per cent in 2018). The remainder purchased vacant land.

“The rise of the rentvestor is well and truly established in this cohort. Among these first-time investors, just over one-third (34 per cent) identified as renting elsewhere while the remaining 66 per cent owned the home they lived in.”