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Jessica Darnbrough
Despite extreme volatility in global financial markets and plunging equity prices, the third party distribution channel remains bullish about the economy and the Australian property market.
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According to The Adviser’s latest quarterly sentiment survey, 72 per cent of brokers believe the property market represents good value to buyers over the coming quarter.
Of the 225 respondents, just 14.2 per cent had a negative perspective of the property market, while the rest remained unsure about the future.
Money Warehouse’s Andrew Cusack said while a lot of potential home buyers prefer to sit on the sidelines at the moment, there was still a fair amount of activity in the market and a lot of great buying opportunities.
“I am seeing a lot of activity in the sub-$800,000 market,” Mr Cusack told The Adviser.
“Business isn’t what it used to be. Buyers are very cautious at the moment, they are not willing to jump on the property ladder - especially in the prestige market. That said, there are a lot of great buying opportunities for those that have the capacity. There are a lot of bargains for first home buyers and upgraders.”
Mr Cusack’s comments echo ANZ’s latest Australian housing snapshot report, which shows the outlook for property remains favourable.
While heightened concerns of a European banking crisis will keep markets on edge and growth in Europe, the US and Japan anaemic, the Asian growth story remains intact and the outlook for Australian resource investment and profitability are still positive.
As such, ANZ’s head of property research Paul Braddick said housing market fundamentals should improve over the next six to 12 months.
Low vacancy rates will eventually drive a renewed acceleration in rents that should encourage investors and first home buyers back into the property market, he said.
