Is it a good time to enter the property market now?
Property investors and first home buyers are hunting for their targets, in the hope of getting a price at a bargain, as ME’s latest Quarterly Property Sentiment Report has shown.
ME Bank general manager of home loans, Andrew Bartolo, addressed Covid-19 has shifted potential customers’ sentiment and led to volatility and uncertainty in the sector.
“The impact of COVID-19 negatively shifted consumer sentiment towards the property market in the second quarter of the year, but we started to see signs of optimism in June,” Mr Bartolo said.
“Hopefully this renewed positivity and growing confidence can weather possible second waves of COVID-19 cases as we’ve seen in Victoria, which is no doubt increasing worry across the nation.”
First home buyers and investors have shown an increase in confidence and interest in buying a property within the next 12 months as the above graph shows when comparing between Q3 and Q2 of 2020. Investor sentiment has once dropped to 17% in Q2 but bounced back to Q3 as an indication of the pandemic easement.
First home buyers stand out as they are more confident about buying properties due to Covid-19 restrictions easing. Investors who wish to rent out their properties should however be aware of the tension between Australia and China, would it lead to fewer students coming overboard to pursue tertiary education? Just recently we witnessed UNSW might have to fire 500 staff, should investment properties closely link with the educational sector, investors should be considered more.
A growing positivism in the property market records for first home buyers, investors and owner-occupiers, representing we may see the intensiveness of buyer and seller negotiation again.
ME’s Group Executive Customer Banking, Craig Ralston said: “Australians in the property market have become more optimistic about house prices, perhaps reflecting several changes in the external environment since the last survey.”
Source: ME QUARTERLY PROPERTY SENTIMENT SNAPSHOT https://www.mebank.com.au/getmedia/7dbbe589-1014-479d-98c6-8ab291a5482e/Property_Sentiment_Report_Q3_2020.pdf
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