Over 50 per cent of owners and prospective buyers believe property prices are set to continue increasing over the next 12 to 24 months, according to new research.
A survey by ME Bank found that 51 per cent of respondents with properties or planning on buying a property believed that prices would continue to rise over the next two years. A further 40 per cent are expecting prices to remain steady, and only nine per cent are expecting property prices to fall.
ME Bank general manager asset products Luke Easton said buyers are best off ignoring speculation about what will happen with property prices.
“Trying to pick the market is impossible and you’re better off focusing on what you can control – saving for a deposit,” he said of first time buyers.
“Similarly, investors would be wise to build their investment strategy based on long-term capital growth and ignore short-term price fluctuations.”
The survey also revealed almost one fifth (18 per cent) of Australians believe they will never be able to afford their own home.
The research was conducted via iView Research and was completed by 1,000 Australian adults.