Sunshine State enjoys positive outlook on property

Results from ME’s latest Quarterly Property Sentiment Report show life really is great in the Sunshine State.

Property consumer sentiment has been buoyed by increased property values and higher levels of market activity and Queenslanders have reported the highest levels of positivity in Australia at 56 per cent in metropolitan areas, and 58 per cent in the booming regions.

Investors and owner occupiers nationally are reportedly more positive than the October quarter, with low interest rates and government incentive schemes helping bolster property values and new builds.

Positive sentiment increased by 15 and 17 percentage points, respectively.

Corelogic’s data for January has highlighted the national uptick of home values, up 0.9 per cent over the past month.

Housing values have now surpassed pre-Covid levels by 1 per cent, and the index is 0.7 per cent higher than the previous September 2017 peak.

The quarterly sentiment report also showed a positive outlook for first home buyers with almost three-quarters of respondents confirming stimulus measures, including HomeBuilder and first-home incentives, had made buying or investing more appealing.

ME’s head of home loans and personal banking, Claudio Mazzarella, said the positive sentiment is a reflection of Australia’s resilient property market and strong incentives currently on the table for buyers.

“While there are still many challenges such as unemployment and job insecurity, it’s promising to see how sentiment and market activity have rebounded,” he said.

“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.”

The Federal Treasury estimated the HomeBuilder program was supporting about $18 billion worth of residential construction projects, with high take-up rates in Victoria, Queensland and New South Wales.

Written: 7 February 2021

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