The ME Quarterly Property Sentiment Report has been released, which gauges property market sentiment.
In particularly, property investor sentiment has risen strongly, with 58% of investors positive in Q1 2021, up from 43% in Q4 2020 and a low of 34% in Q2 2020 (green below):
54% of investors also expect property prices to rise this year, up significantly from 38% in Q4 2020 and a low of 21% in Q2 2020:
According to ME Bank:
“We fully expect to see property investors back in full force this year. Sentiment within this group is bouncing back, with low interest rates make investing in property a more attractive option.”
To date, Australia’s property rebound has been driven overwhelmingly by owner-occupiers:
I expect investors to join the party later this year, especially outside of Sydney and Melbourne.
Rental yields are attractive outside of the two major cities and rental growth is generally solid to strong outside of apartments:
When combined with record low mortgage rates (especially fixed):
The investment case is difficult to ignore.