More Australians investors are ditching bricks and mortar in favour of cryptocurrency, according to new research.
But a leading economist has warned they might be making a bad call.
A report from market research consultancy CoreData shows investment properties have fallen from Australians’ third-most held asset to sixth-most held, with digital currencies such as Bitcoin and Ethereum now third behind Australian stocks and cash.
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It comes as figures from Australia’s largest real estate company, Ray White, reveal almost a third of all its Melbourne auctions in the past 12 months were investors selling up – compared to investors accounting for nearly 20 per cent of buyers in the time frame.
In Victoria this week, PropTrack is expecting 1379 auctions after the state recorded a 61 per cent clearance rate last week.
The CoreData whitepaper, which surveyed 740 Aussies and 311 cryptocurrency users, found that 13 per cent of the nation’s investors owned real estate in 2024.
However, this dropped to 6 per cent this year while crypto increased from 11 per cent of investors using it to 12 per cent.
Ray White’s chief economist Nerida Conisbee said there were benefits to both cryptocurrency and investment properties, but the latter provided advantages such as rental returns and the ability to leverage a residence’s value in order to make large future purchases.
Ms Conisbee said the federal government’s 5 per cent deposit scheme for first-home buyers was “creating enormous levels of activity for cheaper properties” at the moment.
“We know that investors and also first-home buyers tend to target similar properties – so from that perspective, it’s a pretty good type to sell for many investors,” Ms Conisbee said.
Crypto analyst and Digital Wealth Group founder Sydel Sierra said cryptocurrency’s fast-growing value and relative affordability compared to most Australian homes had contributed to its popularity.
“I think that scepticism in crypto has well and truly subsided, with an estimated six million Australians now owning a digital asset,” Ms Sierra said.
While one Bitcoin is currently valued at roughly $155,000, one Ethereum is more affordable at about $5000.
In comparison, PropTrack figures show Melbourne has a $1.007m median house price.
Since cryptocurrency was introduced to the world in 2009, it has had a volatile history including extreme rises and falls in value.
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Originally published as Shock change in Australian property investment habits
