Seventy per cent of property investors believe prices will increase in their market during 2008, a survey has found.
The result represents a big leap in confidence compared to the past three results from mortgage broker Smartline’s annual survey of homeowners and investors.
The latest survey found 70 per cent of investors were largely confident residential prices would increase in their state over the next 12 months, while 26 per cent expected prices to remain steady and 5 per cent anticipated a decline.
In the previous three surveys, the proportion of investors expecting an increase in prices was 46 per cent, 18 per cent and 17 per cent.
Smartline managing director Chris Acret says that although investors are confident of price rises, only 34 per cent planned to buy a residential investment property in the next 12 months.
\”While investors are upbeat about the residential property market, there is still an undercurrent of caution brought about by the series of interest rate increases in 2007, as well as the change in federal leadership,\” Acret says.
\”It will be interesting to see if investors’ faith in property prices overrides their sense of caution and translates to increased market activity in 2008.\”
Although 90 per cent of respondents said they expected another interest rates rise in 2008, just 4 per cent said increases during 2007 had heavily affected them.
