Strong new investment buying intent as most Australians think property will be pricier in five years: CUA

Some 58% of Australians feel confident the economy will remain strong and stable over the coming year, believing Australia will fare better than the US and Europe, according to the latest CUA survey.

It noted any uncertainty Australians had towards the property market was only short term, with 58% feeling positive about it improving over the next five years.

Just 18% anticipate property prices will be below current levels in five years’ time.

Some 33% of those surveyed were intending to take out a loan over the next year, with half intending to do so to purchase either an investment or residential property.

The survey found that 63% of those looking at buying an investment property over the next year were totally new to the market.

Andrew Hadley, group general manager of strategy and marketing at CUA, suggests the findings provide a welcome contrast to the gloomy commentary that has been dominating recent headlines.

“The past few years have certainly been challenging economically and, while global economic uncertainty prevails, the continued strength and resilience of the Australian economy and financial system appears to be helping fuel a renewed sense of confidence and optimism among the Australian public.

“Undoubtedly, the recent cash rate cut announced by the Reserve Bank of Australia (RBA) will help to further drive this sentiment,” Hadley adds.

“As a nation we have been shoring up our savings and been cautious about making any major purchases and this has been particularly noticeable in the property market.

“It’s therefore encouraging to see that CUA’s Borrowing and Investment Intentions Survey highlights a positive attitude towards our property market over the medium term.”

Following the RBA’s latest rates announcement, CUA has cut 25 basis points off its standard variable home loan, pushing it to 6.97%.