Investor sentiment is improving while home-buyer confidence is falling, according to ME Bank’s latest Quarterly Property Sentiment Report.

The second quarter of 2021 saw the overall sentiment in the residential property market decline by 7 percentage points to 42% following record-high sentiment in the first quarter. But investors recorded the highest level of positive sentiment at 52%.

According to ME’s Claudio Mazzarella, sentiment trends have changed following the rapid rise of the property market post-pandemic.

He says the fall in prices in some cities last year created an opportunity for first-home buyers, but many investors became nervous.

Now prices have rebounded and affordability is going down, FHBs aren’t as positive but investors have become active.

One of the main contributors is the drop in available properties: 60% of respondents believe there “isn’t enough choice in the current market”.