Abstract
The purpose of this study is to examine the relationship between property investors’ perceptions of negative public sentiment toward them and their confidence in making buying and selling decisions in the Australian housing market. Using recent survey data collected from property investors across the country and applying ordered probit regression, we find that investor confidence in purchasing property declines when they perceive that the public blames property investors for Australia’s housing affordability issues. The results also indicate that the negative impact of public sentiment on buying confidence is mediated by rising investor concern about political discourse surrounding the housing crisis and government interference in the rental market. Finally, our estimations show that investors’ selling confidence is not influenced by their perceived negative public image.