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The property market is proving to be a better investment choice than the share market after recording a bumper 2007, Residex CEO John Edwards said yesterday.
According to data from Residex, property values grew at a rate of 11.13 per cent last year – with markets in Melbourne, Brisbane and Adelaide performing particularly well.
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Over this same period the share market grew 11.8 per cent, however it has already fallen by 8.4 per cent this year, Edwards said.
“Investors are reentering the [property] market as supply remains tight and rentals increase… and I expect this to continue throughout the year,” said Edwards.
Rental properties are offering strong returns to investors, he said, with average rents increasing by 12.3 per cent.
Whilst Edwards admits that the high levels of growth seen in property over 2007 may not persist, he expects the property market to continue performing strongly.
With the stock market falling, he said, there will likely be a redirection of investor funds into the property market.
