NEWS UPDATE: Property safer than shares in credit crunch
Almost two-thirds of Australians think the credit crunch and global financial crisis is making the property market seem safer to invest in than shares, according to an annual consumer sentiment survey released by Mortgage Choice.
The survey, conducted in November, involved more than 1,000 Australians, of whom 86 per cent were property owners and 75 per cent a mortgagee.
Despite the expected fall in housing prices, 31 per cent said they expected to purchase property next year, with almost two-thirds buying for investment purposes.
The senior corporate affairs manager at Mortgage Choice, Kristy Sheppard, said: “Today’s global financial situation has certainly affected consumer confidence but our survey results show the slide in sentiment is perhaps not as marked as some would expect, nor is the percentage of those deterred from buying property.
“Overall, housing prices are relatively steady and to many consumers the property market appears more stable than the stock market, while interest rates are falling and rental vacancies remain historically low,” she added.
However, half of the respondents expected housing prices to fall over the next year, while 26 per cent expected them to remain steady and 15 per cent expected them rise.
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