In their recent 2014 Global Sentiment Report, Colliers International surveyed 522 of the most wealthy real estate investors in the world. Over 20% of those polled either manage or control portfolios containing over $5 billion worth of properties. In other words, these are the “best of the best” in the property investment field and their opinions carry a lot of weight.
By the Numbers
In Australia and New Zealand combined, only 9% of those who responded expect conditions for investors to deteriorate over the next year.
72% of those polled in the Pacific Region plan to expand their portfolios over the coming year. Last year, only 56% of investors planned on expanding their portfolios.
64% of everyone polled plan to absorb more risk this year, compared to less than 30% last year.
In the Pacific region, 75% purchased properties within their own countries.
Sydney, Melbourne and Brisbane were chosen by 55%, 12% and 4% respectively as global cities in which investors are more likely to purchase investment properties.
What the Numbers Mean to You
We are guessing that most people reading this piece don’t have $5 billion in property holdings. However, that doesn’t mean that we can’t all learn from those who do. We feel that the survey provides some nice clues as to what the market will do in 2014.
Wealthy Investors Lead the Market
Usually, the market goes where the wealthiest investors go. With the exception of a few outliers, the wealthy get wealthy by doing things right. We see 72% planning on adding to their portfolios in our region. We see 91% of investors from Australia or New Zealand Free Sale Appraisal. We see twice as many investors willing to assume more risk this year.
We feel that the current answers almost guarantee a lively market for investors in 2014. We like this because it is an indication that the market will continue to grow and produce good returns for property investors. Unfortunately, if the market becomes “too healthy,” it could cost those who wait thousands of dollars in as much as a year.
Before It’s Too Late…
If you’ve been waiting for a good time to purchase investment property in Perth, call us now: 1300 472 427.
