This and other property insights revealed
The latest Investor Insight survey from Crockers Property Management and Tony Alexander (pictured above) showed a robust net 27% of investors finding it easy to secure good tenants, marking the second-strongest reading on record, and a decrease in investor interest in either purchasing a new dwelling or building one in their own development.
Investor sentiment and property preferences
The survey, garnering 324 responses, indicated no significant change in buying intentions, with 22% of investors considering a purchase within the next year, consistent with trends since mid-2022. However, the net proportion of investors looking to buy has slightly improved to -8%, from -12 in February and -14 in December, suggesting a cautious optimism.
Investors showed a marked preference for standalone houses over townhouses, with demand for new standalone houses rising. This preference aligns with a broader trend towards properties with two-three bedrooms, whether new or existing.
There has also been a growing preference for existing properties over new builds, alongside a decline in self-development projects and a marked decrease in interest in purchasing newly built properties from others, the survey found.
The majority of investors plan to keep their properties long-term, with only 8% considering selling within a year. The share planning to hold their property for at least 10 years or indefinitely increased to 55% from 52% in the previous month.
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Investor concerns and bank attitudes
The survey highlighted ongoing concerns about insurance and council rates, while worries about house price declines are increasing. Interestingly, investors reported a slight easing in their banks’ lending attitudes, despite broader challenges in credit availability.
The survey also revealed a slight increase in investors planning to sell, primarily to fund retirement or to reinvest in other properties.
Rental market trends and insights
A significant 27% net of respondents reported finding it easy to secure good tenants, reflecting a tight rental market where investors can effectively select desirable tenants.
Factors such as the population increase, investors’ plans to sell properties, a decrease in housing construction, and the return of international tourists indicate that the pool of long-term rental providers might diminish, further easing the process of choosing tenants over time.
Meanwhile, while plans to raise rents have plateaued, the average desired rent increase remains at 5.6%.
“Given the strong rises in costs for insurance and rates alongside strong demand driven by the population surge, this trend may reflect declining inflation generally,” Alexander said.
Mortgage and financing insights
Property investors overwhelmingly favour short-term fixed mortgage rates, with a continued preference for one year or less. There's also a slight increase in investors planning to switch from interest-only to repayment mortgages, suggesting a cautious approach to debt management, the survey found.
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