Survey reveals year ahead is full of confidence for buyers
“There are numerous broad factors that drive a property market...
PROPERTY is on the shopping list for the majority of respondents in the Matusik Outlook 2014 poll despite the 3 per cent drop in the February index of the WestpacMelbourne Institute’s consumer confidence levels.
Our annual online survey of property professionals, investors and property-watchers — let’s just call them “property folk” — has confirmed overall positive expectations for the housing market throughout the nation.
We asked our property folk to identify themselves either as buyers, sellers or simply interested public.
And most — some 60 per cent — see themselves as buyers for 2014.
The majority are also investors.
Property in all of the capitals was represented in this poll; the majority of responses related to Brisbane (and other Queensland areas including the Sunshine and Gold Coasts, South-East Queensland and Far North Queensland) — a likely reflection of our strong following in the Sunshine State.
Sydney and a surprisingly high number from Perth were next; followed by Melbourne; and smaller numbers in Canberra and Hobart equally; then Darwin and Adelaide.
Almost 80 per cent of these properties are located in markets that, according to our respondents, are currently in recovery, that is areas that are experiencing rising sales; a return to price growth; improving yields; and increasing home building activity.
Another 16 per cent indicated their property market was in an upturn phase, that is fast sales; strong price growth; steady yields; oversupply; seller’s market.
The balance was split between downturn and bottom of the market locations.
Houses accounted for 60 per cent of the properties covered in the poll; apartments represented a quarter; townhouses 10 per cent; and land the balance.
So, just how do these property folk see the market for 2014? All up, I’d say they are a conservatively optimistic bunch.
These property pundits, in the main, anticipate moderate to good rent and price growth; and increasing sales volumes throughout 2014.
Almost 60 per cent are looking to see rental growth of up to 5 per cent; one in eight expect between 5 and 10 per cent rent growth. And a third of respondents anticipate no change. Modest price increases of up to 5 per cent are anticipated by just over half of respondents; with almost 40 per cent anticipating price rises of 5 per cent up to 10 per cent.
Almost half expect sales volumes to increase by up to 10 per cent; and a further onethird anticipate sales volumes will increase by 10-25 per cent, with just one in five expecting sales to remain steady.
Interest rates are expected to remain on hold by 68 per cent of punters; increase by 24 per cent; and decline by 8 per cent.
Our survey sought to gauge sentiment within the property sector; and while the results by no means form a scientific study; we are encouraged by the message of confidence indicated by the property professionals and owners who contributed to our 2014 Outlook Poll.
There are numerous broad factors that drive a property market- including liquidity, employment, confidence, investment returns, supply and demand.
Confidence plays a big part.