Brokers are concerned the gap between consumer perception and reality is widening – to the detriment of market progress.
The comments come after The Property Council of Australia released new quarterly figures showing a marked drop in confidence levels nationally.
Key findings included poor confidence in the mining states – despite loan enquiry figures rising – and fears that financing wouldn’t be approved.
Peter Verwer, Property Council’s CEO said it was an unprecedented decline.
“It is the first time in the series that sentiment has turned downwards. The property industry’s expectations for the national economy have also worsened. Although there was a brief lift in sentiment in the June quarter, the turn-around has been swift and hard,” he said.
However leading brokers have expressed frustration at what they perceive as a damaging disconnect.
Many see negative sentiment as creating a risk-averse culture, which could, in theory, halt progress.
“From our research and from the ongoing discussions with leading economists, Australia is one of the healthiest economies in the world. Borrowers’ lack of confidence in the property market is due to the overwhelming negative influence of the media,” said Loan Studio's director, Colin Sheppard.
He added that continual investment by overseas property developers showed genuine confidence in the market.
Broker Justin Doobov also told Australian Broker Online there has never been a better time to invest – so long as people were willing to work hard and negotiate.
“While there is doom and gloom on the streets, buying now is a great time to buy, so long as you buy at the right price,” he said. “It’s a buyer’s market so make sure you negotiate hard as a large chunk of your future sales profit is made by how much of a discount you were able to buy the property at today.”
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