South Australian investors the most confident across Australia: First National
South Australia has emerged as the state with the highest expectations of strong growth in investor activity.
High rents and lower home values are contributing to higher rental yields, which is what the investor is focusing on at the moment, according to the First National Real Estate survey of its 400-plus member network.
Its 2012 Property Market Outlook mid-year update serves to compare actual market conditions with the predictions of economic commentators and property market analysts.
Across Australia, investor activity is anticipated to increase as this market sector capitalises on great buying opportunities.
"With less to gain from capital growth, investors are looking more at cashflow from rents," Ray Ellis, the First National chief executive officer says.
"The improved affordability levels will make investors and upgraders the big winners as first home buyers remain reluctant to dip their toes in the property market pool, missing out on the improved market conditions."
Nationally, 50% of members expect investor activity to increase in the coming six months, broken down by state, as follows:
WILL INVESTOR ACTIVITY INCREASE IN THE NEXT SIX MONTHS?
Tasmania, NSW and Alice Springs in the Northern Territory are the only places where less than 50% of members expect investor activity not to increase.
Members say investors and upgraders will be the sectors where the most growth will be experienced.
In Tasmania and Alice Springs, all growth is expected to come from upgraders, while in Victoria, the greater proportion of members expect it to come from upgraders.
The greater proportion of Queensland and New South Wales members say most growth will come from investors, while South Australia is in line with the national average, being evenly split between the two.
Western Australia is the only state where first home buyers are expected to generate the strongest growth.
STRONGEST GROWTH SECTORS
