The number of property investors expecting an increase in the value of their property in the next 12 months has risen 16 per cent on last year to 87 per cent of those surveyed in the annual ANZ Property Investment Survey.
Some 85 per cent of property investors also expect rents to rise in the next 12 months - up from 80 per cent in 2011.
Over the next five years, the average investor expects both their property value and rents to rise by 6-10 per cent.
The survey showed 61 per cent of respondents were planning to buy more property and just under half intended buying in the next two years.
Almost nine in 10 plan to retain their existing property for the long haul.
The proportion of larger investors with seven or more properties is up, along with evidence that the market is now seeing a greater proportion of ‘‘professional’’ investors.
The number of small scale investors with up to three properties dropped to 52 per cent in the ANZ survey, from 62 per cent last year. A rising proportion are now larger investors with seven to 10 properties and full-time investors with 10 or more properties comprises 9 per cent of those surveyed, compared to 6 per cent last year.
ANZ's general manager specialist distribution, Craig Moffat said property investors were treating it as a business and focusing on cashflow and managing risk, rather than counting on big capital gains.
"This prudent approach is also seen in the fact that less than a quarter of respondents have increased their debt/value ratio in the past year."
The survey showed 38 per cent of investors had reduced their debt-value ratio in the past year while 40 per cent said it was unchanged.
It was reported yesterday there had been a sharp increase in mortgagee sales in the first half of this year, with numbers heading back towards recession-era levels last seen in 2009. Figures from property information company Terralink showed 1129 mortgagee sales with most of the increase in mortgagee sales relating to investment properties despite record low interest rates, rising rents and low vacancy levels.