Investors eye for QLD, WA, And NSW

Investors eye for QLD, WA, And NSW

By: Nfinity Financials0 comments

According to the Property Sentiment Report for quarter one Queensland, Western Australia, and NSW were seen as having the best investment opportunity with 76% of investors.

According to the surveyed report from PSR (including season investors, rentvestors, first-time investors, owner occupiers, and renters), 32% of investors found Queensland to have the best investment prospects, Western Australia found to have 24% and NSW was found to have 20%, investment prospects.

According to the survey, 25% of participants stated that Western Australia offers the best prospects for capital development in the upcoming year. This is an almost twofold increase from the previous year when just 12% of investors made the same observation.

Only 58% of respondents possessed investment properties in Western Australia, Queensland, and New South Wales, despite 76% of respondents citing these states as having the best investment potential. This indicates a “strong interest in interstate investment,” according to the research.

Compared to the states that are doing well, just 9% of investors said that Victoria had the best investment prospects. South Australia came in second with 8%, the ACT with 3%, Tasmania with 2%, and the Northern Territory with 2%.

According to the research, “weak” capital growth over the past 12 months and “a perception that government policy is weighted against landlords and investors” are to blame for the fall in interest in Victoria.

According to attitude research, buying an investment property was cited by 22% of respondents as their top financial goal for the upcoming year. An additional 7% of participants expressed a desire to enhance their rental yield, nearly tripling from Q4 2023.

According to the survey, there would be a considerable movement in respondents’ purchasing and selling intentions even if lenders raised interest rates by just 0.25%. Specifically, 33.6% of respondents indicated they would alter their buying intentions, and 34.8% said they would modify their selling habits.

Although fewer consumers now claim that higher interest rates will influence their purchasing decisions, 42% of respondents stated that monthly interest rate increases will impact their plans when asked the same question a year ago.

For investors, detached homes continue to be the most desirable option, with 39% of respondents indicating that they would like to buy one in the upcoming year. This is a considerable increase from the beginning of 2023 when just 21% of poll participants said that detached houses were their preferred option.

The second most popular kind of property was apartments and units, with 23% of investors selecting this form of property as their purchase choice. Townhomes villas came in second with 18%, commercial assets came in fifth, and unoccupied land came in sixth.

According to the research, the most common answer among respondents is that 27% of them plan to buy in the upcoming year. Just 13% of respondents intended to sell, while 12% intended to lease.

According to one responder, the government should provide additional incentives to entice Australians to become investors. “The government needs to give mum and dad investors more incentives to encourage them to re-enter the market because there are currently too many rules supporting the tenant and too much tax applied to investment properties,” the responder stated.

The NSW government did, however, officially declare that it would try to raise taxes on foreign investors and would require property owners to foot the bill for the state’s emergency services.

Report Overview

Investor Interest

  • According to 76% of Investors polled, the greatest places to invest are in Queensland (32%), Western Australia (WA) (24%), and New South Wales (NSW) (20%).
  • Given that just 58% of respondents now own real estate in these states, this suggests a considerable interest in interstate investment.
  • Less interest was shown in Victoria (9%), South Australia (8%), and other states.

Investor Goals & Concerns

  • Investment property acquisition is still the most popular financial aim (22%).
  • Concerns about interest rates have diminished over the previous quarter.
  • The intention to purchase (33.6%) and sell (34.8%) would still be greatly impacted by potential interest rate increases.
  • Rental yield improvement has almost quadrupled in popularity (7%).

Property Preferences

  • The most sought-after housing type is detached dwellings (39%), a considerable increase from 21% at the start of 2023.
  • In order of popularity, townhomes/villas (18%) and apartments/units (23%).

Investor Comments

According to several responders, the government need to encourage investment by lowering landlord taxes and restrictions. 

Government Policy

The government of New South Wales intends to raise taxes on foreign investors and make emergency services payment obligations on property owners.

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