The majority of self-managed superannuation fund (SMSF) members and individual investors are planning to ramp up their listed and unlisted property exposure over the next 12 months, according to a new study.
The survey gathered opinions from over 400 people in these groups from Australian capital cities found 55 per cent intended to re-enter the property market over the next year.
In addtion the Charter Hall Group Investor Forum survey showed that 60 per cent of those intending to invest in the next 12 months planned to invest sums of over $50,000.
It said that nearly one-third of respondents held over $200,000 in cash and term deposits, reflecting the defensive investment strategies taken during the downturn.
“Institutional investors are returning to the market on the strength of excellent buying opportunities, in a climate of reduced competition and rising tenant demand in the industrial space,” Charter Hall’s joint managing director David Harrison said.
“Retail investors should take the lead set by institutional investors as a reference point for their own portfolio allocations.”
The Charter Hall research found that 36 per cent of respondents favoured listed property, while 11.71 per cent preferred unlisted direct property and 6.35 per cent liked residential property.
It said that investors’ main reason for investing in real estate was regular income, with 43 per cent of respondents citing this as their number one driver.
“However, investors also signalled their rising confidence, with 74 per cent of those surveyed believing the Australian sharemarket would rise in the medium term,” the survey said.
