Property professionals throughout the country remain bullish on the year ahead, despite market uncertainties, states a new member survey from the Property Investment Professionals of Australia (PIPA).
More than half (54%) of surveyed property professionals are “very optimistic” about business conditions this year, while another 43% are “optimistic”—despite challenges such as the tightening lending of policies, taxation changes, and potential interest rate increases.
PIPA’s survey gathered insights from a range of professionals who form the peak association for property investment, including Qualified Property Investment Advisers (QPIAs), buyers agents, and mortgage brokers.
“It is encouraging to see property professionals so confident about the outlook for their businesses and this sector more broadly,” said PIPA chair Ben Kingsley. “These results are testament to the increasing professionalism of the property investment industry and the diversified businesses our members are building, ensuring they can navigate various market cycles.”
As for potential setbacks, property professionals expressed concern about the tightening of investor lending, followed by soaring interest rates.
“APRA’s approach to managing investor lending has raised both concerns and question marks for the industry,” Kingsley said. He believes alternative measures could greatly assist in better managing Australia’s property investment market.
“The government and industry regulators should be addressing the need for comprehensive regulation of property investment advice. Introducing a minimum standard of education or qualification for those providing property investment advice would ensure that Australian investors can receive the same level of appropriate guidance provided to anyone investing in other asset classes,” he said.
“Well-selected property remains a compelling long-term investment. Ensuring investors make well-informed, smart decisions, and that they are well protected from dodgy operators, would go a long way towards reducing the number of ill-fated property investment stories and buttressing the market.”
PIPA’s member survey also revealed that Brisbane is the preferred destination among property market professionals, with around 44% of respondents placing this city among the best investment prospects this year.
Mata, M. (2017). Property professionals “very optimistic” about 2017. [online] Your Investment Property. Available at: http://www.yourinvestmentpropertymag.com.au/news/property-professionals-very-optimistic-about-2017-231793.aspx [Accessed 1 Mar. 2017].