Bullish investors defy experts’ expectations

When asked at APIA’s last monthly meeting who intended to enter into a sale and purchase contract in the next three months, about 40% of the attending members responded ‘yes’. Another 30% said they had entered a sale and purchase contract within the past three months.

About 15% of members said they planned to start building within the next six months, and a number said they planned renovations requiring structural changes. “I think we have to conclude that the building industry is still very strong and that property investors are investing money back into improving their properties,” said John May, vice president of APIA.

Members were also asked whether they thought it was a good time to buy residential investment property. Only one-third thought it wasn’t. “What can be concluded? It’s certainly not a bear market, there’s some caution, yes, but there was a lot of bullishness still,” said May.

He said the questions were generalised and “didn't distinguish on the various niche markets, but the results were pretty powerful”.