Shocking change in Australian property investment habits – realestate.com.au

More Australian investors are ditching their bricks in favor of cryptocurrency, according to new research.

But a leading economist has warned they may be making a bad decision.

A report from market research firm CoreData shows that property investments have fallen from the third most held asset by Australians to the sixth most held, with digital currencies such as Bitcoin and Ethereum now in third place, behind Australian shares and cash.

RELATED: Single Moms Reveal How They Became Real Estate Investors

Frankston investment properties spark a $1.11 million bidding war

The Australian bitcoin bosses and their crypto castles

Figures from Australia’s largest property company, Ray White, show that almost a third of all auctions in Melbourne in the past 12 months were sold by investors – compared to investors who accounted for almost 20 percent of buyers during that period.

In Victoria, PropTrack is expecting 1379 auctions this week, after the state recorded a 61 per cent clearance rate last week.

The CoreData whitepaper, which surveyed 740 Australians and 311 cryptocurrency users, found that 13 percent of national investors owned property in 2024.

However, this fell to 6 percent this year, while crypto rose from 11 percent of investors using it to 12 percent.

In 2022, a report from the Australian Government’s Cyber ​​Security Industry Advisory Committee warned that most cryptocurrencies were highly volatile and often targeted by cybercriminals.

---

---

Ray White chief economist Nerida Conisbee says it is likely Victoria will have more investors taking advantage of stronger market conditions over the next six months.

---

Ray White’s chief economist Nerida Conisbee said there were advantages to both cryptocurrency and property investing, but the latter offered benefits such as rental yields and the ability to leverage a property’s value to make large future purchases.

Ms Conisbee said the federal government’s 5 per cent down payment program for first-home buyers was currently “creating a huge activity for cheaper properties”.

“We know that investors and also first home buyers tend to focus on similar properties – so from that perspective it’s a pretty good type to sell for a lot of investors,” Conisbee said.

---

---

Crypto analyst and Digital Wealth Group founder Sydel Sierra says an estimated six million Australians own a digital asset.

---

Crypto analyst and Digital Wealth Group founder Sydel Sierra said the fast-growing value and relative affordability of cryptocurrency compared to most Australian homes have contributed to its popularity.

“I think crypto skepticism has well and truly waned with an estimated six million Australians owning digital assets,” Sierra said.

While one Bitcoin is currently valued at around $155,000, one Ethereum is more affordable at around $5,000.

By comparison, PropTrack figures show Melbourne has an average house price of $1.007 million.

Since cryptocurrency was introduced to the world in 2009, it has had a volatile history, with extreme increases and decreases in value.

Sign up for the Herald Sun weekly property update. Click here to receive the latest news from the Victorian property market straight to your inbox.

MORE: Melbourne couple reveals secret to overcoming money problems

Families are pooling money for long-term rental deals in Surf Coast holiday home hack

A look inside Bec and Chris Judd’s $2.78 million Peninsula sale