Powered by MOMENTUM MEDIA
realestatebusiness logo
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Investors expectant of further value drops

27 May 2020 Grace Ormsby
auction

More than half of Australian investors expect property prices to tumble over the next 12 months, a new survey has revealed.

The second iteration of Switzer Financial Group’s “Switzer Fear, Greed & Hope” survey has showed a stark move towards pessimism in the property sphere, with 54 per cent of respondents indicating that they expect prices to drop over the next 12 months.

Just 4.7 per cent held the same view in February 2020.

Calling it “an astounding turnaround”, the director of Switzer Financial Group, Peter Switzer, commented: “In February, 5 per cent of Aussies thought house prices would fall and 66 per cent expected prices to rise — but in three months, more than one in two think prices will fall!”

Advertisement
Advertisement

Now, less than one in 10 Australian investors — just 9.2 per cent — expect property prices to increase over the next year.

As a result, property is no longer one of the top investment options for Australians.

Switzer also revealed that just 10.5 per cent of respondents surveyed would invest in property right now, compared to 62.7 per cent who would invest in shares.

And despite their record-low yields, term deposits are even being considered a more enticing option than property, with 10.1 per cent still considering the investment choice.

Investors expectant of further value drops
auction reb
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.