Investors set to return to the market in ‘full force’

Following a year of restrictions and challenges for auctions and inspections, ME Bank found that 78 per cent of investor respondents expect there to be more residential real estate activity this season to make up for a dull 2020.

The ME survey, conducted last month, recorded buoyed sentiment across all states and territories, with overall optimism hitting its highest level in the survey’s 18-month history.

“While there are still many challenges such as unemployment and job insecurity, it’s promising to see how sentiment and market activity have rebounded,” said ME’s head of home loans and personal banking, Claudio Mazzarella.

“Government incentives such as HomeBuilder and record-low interest rates have no doubt been large contributors to driving momentum across the market.”

The survey, however, showed a discrepancy between market entrants and investor and owner-occupiers, with the latter reportedly “considerably” more positive than last quarter.

Positive sentiment increased by 15 and 17 percentage points, respectively. First home buyers, however, recorded a fall in positive sentiment, down 4 percentage points to 27 per cent.

Moreover, of those intending to buy or sell property in the next 12 months, more indicated they’re eager to do this “as soon as possible”.

“A busy spring property season has overflowed into the start of this year and all signs point to raised levels of activity continuing for the coming months.

“This will be especially beneficial on the supply side, offering prospective buyers more choice, ultimately helping the economy,” Mr Mazzarella concluded.