For the first time in 18 months, investors are now optimistic about the growth of real estate prices, driven by the green shoots that are manifesting themselves in the market, according to the latest ANZ / Property Council Survey .
New signs of recovery fuel investors' positive sentiments, said Felicity Emmet, chief economist at ANZ,
"Since reconciliation rates have risen sharply, prices have risen sharply in Sydney and Melbourne for two months, and real estate financing is starting to recover. Interest and regulatory easing were the main factors behind this turnaround, "she said.
Read also: Investors return to the housing market
Emmet said that continued improvement in credit availability could indicate that construction would also resume in the coming months.
"Prices clearly benefit from the combination of pent-up demand and low inventory levels, but we continue to believe that the current period of strong monthly price increases will be relatively short-lived and that prices will rise. to moderate in the future months as supply increases and that credit policies remain relatively limited, "she said.
Weak General Feelings
Despite the good performance of the residential real estate segment, overall sentiment has shifted from its post-election federal rebound to a below-historic level driven by economic concerns.
"Growing concerns about national economic growth are weighing on sentiment in the real estate sector, which fell sharply in the last quarter, with the real estate sector accounting for 13% of GDP and strong housing construction important change, "said Ken Morrison, General Manager of the Property Council of Australia.
He stated that disappointing feelings might indicate the need for reforms by the federal and state governments, focused on increasing investment in the real estate sector.
"Certain levers of productivity can be used, particularly at the state and territory levels, which can mitigate the cyclical nature of the residential real estate market and make the growing housing needs of our population, as well as other infrastructure and services, are properly satisfied, "he said.
In addition to weak housing construction prospects, investors are not optimistic about the commercial real estate market. Emmet said that the decline in confidence in the commercial real estate sector, without being brutal, continued the downward trend observed since mid-2018.
"A marked weakness in retail trade clearly weighs on the entire commercial sector, while concerns over property tax reform appear to have dampened sentiment in South Australia", she said.
Morrison said the risky property tax changes for homeowners and investors in South Australia had resulted in a sudden drop in confidence in all areas in just one quarter – a colossal goal for a state which had paved the way for sentiment and trust recent surveys.
"All Australian governments have a clear message that trust is hard won and easily lost through ill-conceived, ad hoc or harmful policy changes," he said.
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