Queensland has solidified its status as the location of choice for Australian property investors, who are becoming increasingly positive around the prospects of capital growth.
Australian Property Investor Magazine’s latest quarterly Buyer Sentiment Survey showed 36 per cent of respondents said the…
Queensland has solidified its status as the location of choice for Australian property investors, who are becoming increasingly positive around the prospects of capital growth.
Australian Property Investor Magazine’s latest quarterly Buyer Sentiment Survey showed 36 per cent of respondents said they were keen to buy in the Sunshine State, a slight gain from 33 per cent in the previous poll.
Despite its high entry price, New South Wales was the second-ranked location for respondents, at 27 per cent, while 22 per cent of those surveyed said they intended to buy in Victoria.
Just 8 per cent of respondents said they were considering purchasing in WA, despite increasing positivity in Perth property as home values and weekly rents start to lift, and as competition heats up to secure a slice of the market.
The survey polled more than 300 residents across Australia, with 53 per cent of those respondents identifying as property investors.
More than two thirds (69 per cent) said they felt positive about current market conditions, up from 66 per cent in the previous survey.
“The results reflect what selling and buyer’s agents have been telling us for the last few months; buyers are very active, but listings are limited, which is resulting in hot competition for sales,” API Magazine editor Dan Wilkie said.
“And with so much heat in the Queensland property market, it’s no surprise there that investors are looking to get in on the emerging property boom.
“It seems like every week another developer announces a stunning sales campaign in South East Queensland, while auction clearance rates and private treaty sales remain at historically high levels.
“It appears investors are starting to join the throng of owner-occupiers making their presence felt in the Sunshine State.”
Affordability emerged as the biggest concern for buyers, with 14 per cent of respondents singling out high prices as their biggest worry, up from 12 per cent in the fourth quarter of 2020.
Stamp duty was another concern, with 11 per cent of respondents saying it was their top worry, while concerns over the availability of finance dipped slightly.
Half of those polled said they were looking to buy a detached house, with just 14 per cent saying they’d like to buy an apartment.
“Apartments and units remain out of favour for investors, most likely because of the continued uncertainty over when international borders will reopen,” Mr Wilkie said.
"And for owner-occupiers, the ongoing trend has been for bigger dwellings on bigger blocks, with proximity to the CBD no longer a top priority as more and more people remain working from home.
“With the vaccine rollout having hit a major roadblock, there’s no real timeframe for when inner city apartment investors might get some relief from the COVID-related shocks they’re still experiencing.
“International students and professionals migrating to Australia often enter inner city unit rental markets before they decide to buy, so with the borders remaining shut, that market segment is likely to be facing challenges for the foreseeable future.”
