Wed
22 Feb
2017

Property professionals bullish on year ahead despite market uncertainties: survey

Media Release: Wednesday 22 February 2017

Key points:

  • Investor lending squeeze is the biggest concern
  • Brisbane is a preferred investment destination

22 February 2017: Despite market uncertainties such as the tightening lending of policies, taxation changes and potential interest rate increases, property professionals are optimistic about the 2017 market outlook and overall business conditions, a new survey has found.

According to the Property Investment Professionals of Australia (PIPA) Member Survey*, more than half (54%) of property professionals are "very optimistic" about business conditions for 2017, while another 43% are "optimistic".

The survey gathered insights from a range of professionals who form the peak association for property investment, including Qualified Property Investment Advisers (QPIAs), buyers' agents and mortgage brokers.

PIPA chair Ben Kingsley said: "It is encouraging to see property professionals so confident about the outlook for their businesses and this sector more broadly. These results are testament to the increasing professionalism of the property investment industry and the diversified businesses our members are building, ensuring they can navigate various market cycles."

The survey also shows that 52% of the respondents plan to employ more staff in 2017, while none have plans to reduce staff numbers.

"A buoyant property sector can make a significant contribution to the Australian jobs market and broader economy – and it's great to see this is set to continue in the year ahead," Mr Kingsley said.

Investor lending squeeze a concern

According to the survey, property professionals' biggest concern is the tightening of investor lending, followed by rising interest rates.

"APRA's approach to managing investor lending has raised both concerns and question marks for the industry," said Mr Kingsley, who believes alternative measures could greatly assist in better managing Australia's property investment market.

"The government and industry regulators should be addressing the need for comprehensive regulation of property investment advice. Introducing a minimum standard of education or qualification for those providing property investment advice would ensure that Australian investors can receive the same level of appropriate guidance provided to anyone investing in other asset classes," he said.

"Well-selected property remains a compelling long-term investment. Ensuring investors make well-informed, smart decisions, and that they are well protected from dodgy operators, would go a long way towards reducing the number of ill-fated property investment stories and buttressing the market."

The association's views are echoed firmly by its member base. The survey showed that 86% of respondents think Australian consumers need a more comprehensive education program for property investment.

PIPA's member survey also found that Brisbane is a preferred destination among property market professionals with around 44% of respondents selecting the Queensland capital for the best investment prospects this year.

 

 **ENDS**

NOTE TO EDITORS

* The PIPA Member Survey gathered responses from association members from across the country between 23 January 2017 and 10 February 2017.

About PIPA

The Property Investment Professionals of Australia (PIPA) is a not-for-profit association established by industry practitioners with the objective of representing and raising the professional standards of all operators involved with property investment.

Since its inception, PIPA has developed codes of ethics and conduct and professional standards of accreditation and education for the property investment industry, including a Property Investment Adviser Accreditation Course. 

PIPA is actively lobbying the federal government to bring property investment advice into a regulatory framework. Until such regulation is introduced, PIPA will continue to provide the public with warnings about working with ethical and professional industry practitioners. For more information visit www.pipa.asn.au

CONTACT

Maggie Liu
Honner Media
maggie@honnermedia.com.au
Ph: 02 8248 3744

 

 

 

 

 

 

 

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