Investor Sentiment Eases

Government and legislation changes are stopping almost a third of potential investors from buying, according to the latest APIM Property Sentiment Report.

Its Q2 report says those that are keen to invest consider Queensland the best option (35% of respondents), followed by Western Australia (20%), Victoria (18%) and New South Wales (12%).

The report says the Australian property market has undergone a “stunning shift” in confidence.

“This quarter’s findings suggest sentiment has moved beyond caution into outright pessimism, driven largely by changes to the Federal Budget and associated concerns over government policy,” it says.

The report says the drop in confidence does not point toward a widespread disengagement from property.

“It suggests, instead, that investors are reassessing their strategy. Buying intentions have softened and selling intentions have increased, but many respondents remain focused on long-term objectives such as retirement planning and strengthening their financial position,” it says.

“While opportunities remain, the survey suggests investors are approaching the market with greater caution and a growing awareness that government intervention may play an increasingly significant role in shaping investment outcomes.”