Victor Kumar on owner-occupier demand’s investment importance

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.