Australian Property Investor Survey

australian property investor survey findings

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Australian property investor survey as seen in

 

MRD PARTNERS MEDIA RELEASE | JUNE 15TH 2015

Queensland the state of choice for positive property investors

MRD Partners' latest survey finds more than 50% of investors in Australia plan to buy in the next 12 months.

Queensland is by far the state of choice for property investors looking to buy, according to new research by property investment experts MRD Partners.

More than half - or 1 in 2 - of respondents to MRD’s Australian Property Investor Survey indicated the Sunshine State was where their next investment would be.

Queensland outstripped its rival states of New South Wales, Victoria and Western Australia in popularity by four to one, South Australia by 6 to 1, Tasmania by 32 to 1, and the Northern Territory and the Australian Capital Territory by 48 to 1.

WA was the second choice behind Queensland, but it was a distant second, with only 13.61 per cent of respondents indicating the state was their preferred investment location.

investors state of choice

Nick Lockhart, MRD Partners' Managing Director, said it was no surprise Queensland was the focus for investors going forward.

He said there had been plenty of speculation over the past 18 months pointing to South East Queensland in particular as the place to invest, largely because it was long overdue for an upturn.

“Investors know all markets go through what we call a ‘property cycle’, where there is typically a boom, followed by a flat market and some price correction before it lifts again, and Brisbane is the only capital not to have experienced a substantial lift since the GFC,” Mr Lockhart said.

“The Brisbane market has moved from recovery to growth but has not yet entered what we could call a ‘boom’ market, so there is plenty of opportunity for people to get in now and buy before that growth comes.”

Survey respondents indicated they believed the Queensland market was ‘on the comeback’, along with the Australian Capital Territory, South Australia and Tasmania. New South Wales and Victoria were considered to be at the top of the cycle, while the property market in Western Australia and the Northern Territory were labelled as ‘in a slump’.

Mr Lockhart noted that the WA property market had recently stagnated – or fallen in some instances - due to the slowdown in mining, which was creating opportunities in the state for investors.

But he also noted the majority of investors who indicated a desire to buy in WA were those from the state, which was evidence of a preference to buy “in their own backyard”.

“Alongside Western Australia, New South Wales and Victoria were also high on the shopping list for investors, which was to be expected,” he added.

“Even though these states have experienced significant growth recently, they will always be popular markets as they have a history of strong growth.”

MRD’s survey found the majority of property investors were positive about the market, with more than 51 per cent of respondents indicating they would buy over the coming year and 50 per cent indicating they believed negative gearing would remain despite recent political debate about its possible removal.

Investors from the Australian Capital Territory expressed the highest sentiment, with 89 per cent wanting to buy in the next year, followed by those from NSW at 66 per cent.

Western Australia, South Australia and Tasmania were the only states where the majority of investors indicated they did not want to buy over the next 12 months.

“Now is an amazing time to invest due to the historically low interest rates on offer - but only in certain markets,” Mr Lockhart said.

“Investors should focus on those markets that are in the recovery stage or entering the growth phase of the cycle and should avoid markets that are at – or near - the top of a recent growth phase.

“One of the exciting things about the Australian property market is that it has markets within it at varying stages of the growth phase at any one time. In that sense, there is usually an attractive place for investors to invest, and at this time the most attractive would have to be Brisbane and South East Queensland.”

The MRD survey results dispel the common belief that property investors are ‘rich’, with nearly 87 per cent of respondents identifying as being from a low (23.71 per cent) or middle-income (62.89 per cent) household.

Investors surveyed preferred to buy a house and land (62.8 per cent) as opposed to townhouses (15.46 per cent) and units/apartments (14.01 per cent), and were almost equally split on whether they preferred to buy in the inner city (47.34%) or in areas further from CBDs (45.41%).

“People still believe the value of a property investment is in the land,” Mr Lockhart said.

“As medium density has given way to higher density – that is, as bigger apartment blocks and townhouse complexes are being built – there has been a shift back to single-dwelling homes.

“In the past two decades master-planned housing estates have sprung up making housing further from our CBDs more appealing. With them comes a mixture of retail and commercial facilities, as well as residential housing, usually with lakes, parks, community facilities, schools, hospitals and bikeways.”

- ENDS -

Nine survey reports for downloading

For a comprehensive breakdown of the exact survey questions and how the national response results differed with the eight different states and territories, leave your details below and we’ll send you access to the nine reports.

Where we are sourcing investment property opportunities at this time

While not limited to these areas, our main focus at this time in the property cycle are the Melbourne and Brisbane / South East Queensland property markets.

Right now MRD is on the ground finding handpicked investment properties for pre qualified clients.

Get a pre approval now

The best way forward is to have certainty around your current purchasing capacity. MRD can assist you with this by putting in place your deposit loans as well as arranging a pre approval.

Doing this enables you to be ‘buyer-ready’ when the right opportunity presents.

Simply CONTACT US online and use the hashtag #buyer-ready in the comments section; we’ll know exactly what that means. Alternatively call us on 1300 883 854 and tell us how we can best support you at this time.

Partnering with you for your investment success,

Nick Lockhart

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download the property investor survey results