INVESTOR sentiment in the residential property sector is starting to improve, according to a survey by Ashe Morgan Winthrop.
The biannual study found 43.9 per cent of 962 property professionals surveyed predicted the market would strengthen in the coming six months - up 7.5 percentage points on the previous study. But land tax, stamp duty and a lack of quality investment stock remained strong deterrents to investors. Sentiment towards Queensland residential property had started to wane, in line with flattening property prices in that state, but demand for West Australian property continued to fire. In Queensland 39 per cent of respondents expected the market to improve, with 45.4 per cent expecting prices to remain stable. However, in Perth 92.9 per cent, emboldened by the resources boom, expected prices to continue to improve. "The booming West Australian market looks set to continue its strength, with an improvement in investment optimism of 7.4 percentage points over the last six months," Ashe Morgan Winthrop managing director Michael Rothner said. Almost 32 per cent of respondents identified a lack of suitable stock as the greatest impediment to investing in property, with 13.2 per cent citing government duties and taxes. The survey results follow research released this week by the Property Council of Australia, which found taxes and government-related compliance costs accounted for 25 per cent of the cost of building a new home.
But land tax, stamp duty and a lack of quality investment stock remained strong deterrents to investors.
Sentiment towards Queensland residential property had started to wane, in line with flattening property prices in that state, but demand for West Australian property continued to fire.
In Queensland 39 per cent of respondents expected the market to improve, with 45.4 per cent expecting prices to remain stable.
However, in Perth 92.9 per cent, emboldened by the resources boom, expected prices to continue to improve.
"The booming West Australian market looks set to continue its strength, with an improvement in investment optimism of 7.4 percentage points over the last six months," Ashe Morgan Winthrop managing director Michael Rothner said.
Almost 32 per cent of respondents identified a lack of suitable stock as the greatest impediment to investing in property, with 13.2 per cent citing government duties and taxes.
The survey results follow research released this week by the Property Council of Australia, which found taxes and government-related compliance costs accounted for 25 per cent of the cost of building a new home.
