A real estate network has predicted that share market volatility will drive investors toward property in 2016.
While recent data shows investors moving away from real estate due to higher interest rates and tightened regulations from APRA, LJ Hooker national research manager Mathew Tiller said share market volatility will have investors giving the real estate market another look.
“The current share market instability will have a lot of investor’s looking for a safer and less volatile investment and real estate markets will benefit from this,” he said.
Tiller argued that investors would see property as a lower risk and higher return option compared to the share market. He predicted this could see the property market perform solidly in 2016. “While this won’t lead to the strong levels of capital growth seen in 2015, it will see prices reach the upper end of forecasts,” he said.