Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

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

Market ripe for property investors

By Staff Reporter
12 November 2014 | 1 minute read

A survey of Aussie property investors shows unwavering confidence in today’s market, with 80 per cent of respondents stating now is a good time to buy and 68 per cent intending to do so within the next 6-12 months.

Low interest rates, capital growth opportunities and stability were three top factors investors were choosing to purchase property, with one industry expert stating many are taking advantage of the low interest rate to build on a property portfolio.

Chair of the Property Investment Professionals of Australia Ben Kingsley said there has been concerns that some markets are overheated. However, the survey results show investors don’t share that view.


“Certainly there has been strong price growth in some markets, but this is not the case right across the board and these survey results reinforce the fact property remains a firm investment favourite,” Mr Kingsley said.

“Investors recognise the long-term capital growth prospects property brings and they are taking advantage of a low interest rate environment to build their property portfolios.

“Unlike other asset classes property is not recognised as a financial product by ASIC, which means anyone is free to provide property investment advice… A lack of regulation leaves consumers vulnerable to unscrupulous operators, and this survey reveals that this is a chief concern for investors.”

More than half of those surveyed (56 per cent) said Brisbane was the hottest area for investment, an increase of 8 per cent from the start of 2014. Sydney followed at 13 per cent, Melbourne at 11 per cent and Perth at 9 per cent.

An overwhelming majority of respondents (80 per cent) said the government should be doing more to protect investors against property spruikers, with 87 per cent believing people who give property investment advice should hold a licence.

Mr Kingsley stressed the need for investors to carry out due diligence on any property purchase, adding anyone is free to provide property investment advice and a lack of regulation leaves consumers vulnerable to unscrupulous operators.

“PIPA is actively lobbying the federal government to bring property investment advice into a regulatory framework, but until such regulation is introduced, we will continue to provide the public with warnings about working with ethical and professional industry practitioners,” Mr Kingsley said.

The study, titled the Smart Property Investment/PIPA Property Investor Sentiment Survey, interviewed 627 people over August and September 2014.

Smart Property Investment managing editor Phillip Tarrant said the survey found a clear relationship between low interest rates and property investment activity.

“More than half of respondents felt their recent purchase decisions were accelerated by the low interest rate environment,” Mr Tarrant said.

“With interest rates unlikely to rise anytime soon, we may see strong property market activity continue for some time yet.”

Market ripe for property investors
lawyersweekly logo

Feeling burnt out? The newest event to hit the industry, REInnovate, is a must-attend for serious real estate professionals facing the pressures of a heavy workload. Get ready to walk away with the undeniable structure for success, efficiency and profitability, and get yourself back on track to focus on what’s really important for your business. Get your early bird ticket now.



Do you have an industry update?

top suburbs

12 month growth
Glenelg South
Yandina Creek
Kembla Grange
Killcare Heights
Subscribe to 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.