How is Australian investment faring?
Looking at the investment property market, it appears that the industry is thriving. The Australian Bureau of Statistics recently released its Residential Property Price Index, which recorded price rises in every capital city in the country across the last year. Sydney lead this by a considerable margin, but Melbourne, Brisbane and Adelaide all saw price index boosts of more than 5 per cent.
So with this growth, it is likely that investors have seen some health capital gains in their property. But how do investors and other buyers feel about their property?
How do buyers feel at the moment?
RP Data recently conducted its consumer housing market sentiment survey, which asked 1,021 people about their feelings on the housing market in the coming year. During the September quarter, they found that 66 per cent of respondents thought that now was still a good time to buy into property, reflecting confidence in the real estate market.
The response was particularly strong in Tasmania, Queensland, South Australia and Western Australia, all of which recorded more than 75 per cent of respondents feeling positive about buying a property.
New South Wales residents were less positive about buying a home, which RP Data research analyst Cameron Kusher suggests is due to prices being somewhat higher in Sydney.
And the future?
As for how people expect the property market to shift in the next 12 months, RP Data discovered that sentiment is also largely positive. Its survey found that 45 per cent of respondents expect home values to increase in the next year, while a further 43 per cent anticipate stability in this figure.
This left only 12 per cent of people who thought the value of their property would fall, an excellent result for anyone looking for buoyed market confidence.
Rate rise expectations
In a Reserve Bank of Australia statement on the cash rate staying stable for the 15th consecutive month, Governor Glenn Stevens noted that it was appropriate to keep interest rates steady over the next few months. This lines up with the results of the RP Data survey, which indicate 63 per cent of people expect interest rates to remain steadfast through to March 2015.
This figure declined to 58 per cent when asked about interest rate stability over the next 12 months, but overall this paints a positive picture for the property market.
Whether for investment or occupation, it seems that most of Australians agree that the future still holds significant prosperity in real estate.