Lower interest rates and a strong economic outlook have seen investors return to the real estate market across Australia, with some even targeting luxury properties.
Capable of borrowing more money than ever before, industry players say investors prefer homes over units, pushing their limits to even buy prestige in order to capitalize on an insufficient supply in the high-end rental market.
“There are definitely more investors in the housing market, more than what we typically have,” said Ray White NSW chief auctioneer Alex Pattaro. Domain. “Although we are now seeing the apartment market rebound and investors and first-time homebuyers are buying.”
The return of investors was a good sign for the market, Pattaro said, with people much more confident to find tenants capable of paying rent after a tumultuous year for landlords throughout the COVID-19 pandemic. .
Buyer’s agent and director of his namesake firm, Grant Foley, said he had noticed a “sharp increase” in the number of Sydney-based investors returning to the market since early 2021.
“Last year, my clientele consisted of 70% owner-occupiers and 30% investors, but, at the moment, it’s reversed, ”Foley said.
Data from recent Australian Bureau of Statistics Loan indicators report showed a significant increase in the number of investors returning to the market in early 2021.
He found that the number of loan commitments to investors jumped 9.4% in January and 22.7% since the same period last year.
However, these numbers do not represent how busy the market is for investors looking in certain parts of the country.
Brisbane-based Streamline Property buyer attorney Melinda Jennison said the company receives so many inquiries from investors that it is struggling to keep up.
“Investors have been really interested since mid-January and it hasn’t stopped,” Ms. Jennison said. “We had a very serious investigation. “
They were particularly busy with interstate investors from Sydney and Melbourne, who were looking to enter the market as prices rose, she said.
Margaret and Ziv Tasevski were interstate buyers who snatched up a home as an investment in Newmarket, inner northwest Brisbane, earlier this year.
The Wollongong-based couple, who own a few investment properties, had searched Adelaide and Canberra, but said the number of people opened for inspection made buying difficult.
“We just thought it was better value for money and wanted something closer to the city,” Ms. Tasevski said. “For something like what we bought, you’ll end up spending an extra $ 2 million in Sydney.”
Ms Tasevski said they were aware of the influx of people to Queensland looking to escape blockages in other states and were hoping to get a good rental return.
Their home is currently undergoing renovations, with hopes that it will hit the rental market in the coming weeks.
While buyers like the Tasevsky sought to buy closer to the city, some sought to spend their investment money in the prestigious areas of Sydney, Melbourne and Brisbane.
Ray White Bulimba sales agent Trevor Egan said he has sold a few properties in recent months to investors, some of whom are expatriate buyers planning to return home after COVID-19 has passed.
A property, at 7, rue Jilba, Indooroopilly, in Inner West Brisbane, sold for $ 1.93 million to an investor, before being leased for $ 1,500 per week.
“Investors are definitely looking for homes, the apartment market has yet to take off as much,” Egan said. “Because business leaders move to Brisbane, investors in Sydney and Melbourne are buying a higher end home for a better return. “
In Sydney, Di Jones partner of the Lower North Shore Hamburg pier these properties were sold in prestigious areas to investors.
They were taking advantage of lower interest rates and a tighter rental market, as returning expats – returning to properties they owned – reduced the number of rentals available.
In February, a four-bedroom house in Sydney’s Lower North Shore, in 51 Ellalong Road, sold to a keen investor for around $ 5 million. It is now for rent with an advertised deposit of $ 14,000.
51 Ellalong Road, Cremorne NSW 2090
Mr van Hamburg said investors were looking for prestige homes as tenants were looking for more space to live and work from home.
“Over time, homes will only get more expensive, so it’s really about investors getting higher capital gains. [profit from sale],” he said.