Victor Kumar on owner-occupier demand’s investment importance

In Short:
– Owner-occupier demand is a reliable indicator for property growth, signalling future increases rather than lagging median prices.
– Suburbs with over 60% owner-occupier rates are more resilient during downturns, ensuring stable property values.

Victor Kumar from Right Property Group is urging investors to rethink how they identify growth in the property market, pointing to owner-occupier demand as a far more reliable indicator than traditional metrics like median price.

While median prices can be distorted by a handful of high-end sales, owner-occupiers represent genuine, sustained demand. These buyers are emotionally invested in their homes and communities, often upgrading their properties and advocating for better local infrastructure. This creates long-term value that goes beyond short-term data spikes.

Kumar highlights that suburbs with more than 60 percent owner-occupiers tend to be more resilient during downturns. Unlike investors, who may exit the market under financial pressure, homeowners are more likely to hold their properties. This stability helps create a price floor, protecting values even in uncertain economic conditions.

Emotion also plays a powerful role in driving price growth. Properties that appeal to owner-occupiers often attract multiple bidders, leading to competitive tension and higher sale prices. In contrast, investor-grade properties typically see less competition, limiting their upside.

When it comes to strategy, Kumar advises against chasing rapid portfolio expansion. Instead, he recommends focusing on two or three high-quality assets and taking action on properties that meet key criteria, rather than waiting for the perfect deal. In a moving market, getting in with a “good enough” investment can be the difference between growth and missed opportunity.