Property investors believe government regulation and tax changes are their biggest risk, but most are still planning to buy more property, a survey shows.
The annual ANZ Property Investment Survey shows 92% of investors expect the median property value to increase by 4.3% next year compared with 3.1% last year, while 98% expect increases over five years.
More than a quarter say there is a risk of interest rate increases, up from 18% last year, and they are all wary of the effects of the Reserve Bank's restrictions on high loan to value ratio lending.
ANZ general manager specialist distribution Craig Moffat said most investors were focussed on long-term returns.
"While they are expecting to see increases in property values, they are pretty realistic over a five-year period of what that might look like for them," Mr Moffat said.
"They continue to be very focussed on making sure that their expectations are well in check, that they've got clear business plans and they clearly understand how they're going to continue to grow as an industry."
An important feature of the survey compared with previous surveys was there was no longer a focus on significant property values or rental increases, he said. Effectively, fewer investors were trying to make a quick buck from rising house prices.
"I think you see that in terms of our investors saying that nine out of 10 of them, or 90%, are planning on holding their property over the long term," Mr Moffat said.
Property investors expected values to increase during the next five years, although their expectations were "pretty modest".
