Australian property market set to shine again

Wizard Home Loans says the number of Australians planning to buy residential investment property in the next 12 months jumped by 13% to 878,000 in the March quarter, up from 779,000 in the December quarter.

Despite a slight decline in New South Wales and the ACT, the number of would-be investors has jumped by more than 75% since the September 06 quarter, following three years of persistent decline. Demand for residential investment property was strong in most states, but dips were recorded also South Australia and Northern Territory. And higher income earners continued to dominate the investor property market.

"This suggests intending property investors are a healthy mix of first-time investors and more seasoned investors who may have quit property to take advantage of the superannuation contribution incentive and are now keen to get back in the market," Wizard chairman Mark Bouris said.

"Upper white-collar workers recovered from last quarter's dramatic slide in investment intentions and continue to maintain their position as the dominant group of all tomorrow's property investors," Mr Bouris said.

Of the upper-white collar group, professionals posted the biggest increase among this occupation, with 267,000 intending to buy in the March quarter up from 159,000 in the December quarter.

"With property returning as a key asset class in the investment portfolio, it's fair to say the chasm between demand and supply will be a key factor affecting the future vibrancy of Australia's property investment market," Mr Bouris said.

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