The number of loan commitments to real estate investors in Australia has returned to pre-pandemic levels, according to data from the Australian Bureau of Statistics (ABS).
During the month of September, more than $ 5 billion in new investor loan commitments were recorded, a value similar to February of this year before COVID-19 had a significant impact about the country; this increase in value was driven by an increase in the number of investor loan commitments which increased by more than 5% in September and 9% in August.
According to Daniel Walsh, director of Your Property Your Wealth and buying agent, investor demands have exploded over the past month.
"The survey comes from both new and seasoned investors who want to take advantage of the low interest rate environment and buy a property before prices rise further" , Walsh said.
“Many investors have watched and waited to see what happened to real estate prices during the pandemic and now feel more confident to move forward with their investment plans [as] We can all see that the prices have held up extremely well, and have even increased in some places.
Walsh also saw first-hand evidence of a trend exposed in PIPA's 2020 Annual Investor Sentiment Survey: a significant share of investors – 41%, to be exact – has it. Intend to buy in a different state than they live in for the next 12 months.
For the fifth year in a row Brisbane became the top choice of investors in the survey, with 36% believing the city to offer the best prospects for investment over the next year.
Walsh believes the current market conditions in Brisbane are the strongest they have been since he started buying in the city five years ago.
However, according to SQM Research, the number of real estate listings in Brisbane during the month of September was the lowest reading for that month seen in the past five years.
“Stocks are really becoming a major issue in many parts of Brisbane,” Walsh said.
“In some places, like the Redlands and parts of Moreton Bay, you have to use all of your networks and professional know-how to secure a property for your client because the listings are so low. "
Still, those who succeed will be richly rewarded, as Walsh reported that investors in parts of Brisbane have seen price hikes of up to 10% in less than 12 months, with stronger growth at the horizon given that interstate migration is likely to intensify in the short to medium term.
Top suburbs:
Will Parliamentstown
,
lockridge
,
Glendenning
,
homebush
,
thebarton
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