Share market volatility sees investors return to property
As the Australian share market experiences its eighth straight day of losses the nation’s leading real estate network, LJ Hooker predicts the return of investor activity.
According to LJ Hooker National Research Manager, Mathew Tiller the recent share market turmoil will provide an upside for residential real estate demand.
“The current share market instability will have a lot of investor’s looking for a safer and less volatile investment and real estate markets will benefit from this,” he said.
According to Mr Tiller the downward movement in the share market will cause investors to re-enter the property market.
“Over the last quarter data has shown that investors have been moving away from real estate, due to higher interest rates thanks to additional lending regulations from APRA,” he said.
“However investors will begin to reconsider property, as they will see real estate as the lower risk and higher return option.”
The return of investors will spur slowing property markets on.
“While this won’t lead to the strong levels of capital growth seen in 2015, it will see prices reach the upper end of forecasts,” he said.