Property market sentiment dips as investors reassess preferences
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Property market sentiment has fallen below 50 per cent for the first time in a year, according to the latest Australian Property Investor Magazine Property Sentiment Report.
The quarterly survey, which polled 724 readers, revealed shifting trends among various property market participants, from first home buyers to seasoned investors.
API Magazine editor Craig Francis said the report provided unique insights into the changing property landscape.
“For the first time in a year, positive market sentiment has dipped below 50 per cent, with the number of respondents either sitting on the fence or having a negative sentiment rising appreciably,” Mr Francis said.
The report highlighted a change in investors’ state preferences, with Western Australia’s popularity waning.
“Western Australia’s shared preeminence with Queensland in terms of preferred property investment states has eroded, with New South Wales back in vogue,” Mr Francis said.
Despite affordability concerns, detached houses remain the most popular property type for investors, while interest in commercial property has risen significantly.
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The survey found that buying an investment property in the coming year is the top priority for 17 per cent of respondents, ahead of positioning for retirement and reducing loan debts (both 15 per cent).
Affordability has overtaken interest rates and finance as the biggest concern for property transaction decisions in the year ahead.
The report also revealed that the proportion of respondents expecting property prices to continue rising has fallen sharply.
Rising living costs have made borrowers increasingly nervous about managing potential interest rate hikes.
The API Magazine Property Sentiment Report Q2 2024 provides comparative insight into market trends, supported by editorial commentary and informative graphics.