Real estate investors are expected to continue to strengthen their presence in the market over the coming months, which could potentially lead to price hikes, according to the latest report from the Property Investment Professionals of Australia (PIPA).
Peter Koulizos, President of PIPA, said investment activity has increased in recent months which is expected to accelerate this year.
New investor loan commitments have increased from a low point in investment activity in May, up about 10% in December compared to the same period in May. ; last year.
“In fact, the latest official data shows that more than $ 6 billion in new investor loans were recorded in December – the highest level since July 2018,” he said.
Koulizos said the growing number of investors in the market, combined with strong activity from owner-occupiers and first-time homebuyers, would add to the pressure on property prices in many suburbs of Australia.
“Part of the reason for the rising house prices is the low supply of properties entering the market, which was also reported in last year's survey when 71% of investors have indicated that the pandemic has made them less likely to sell a property in the short term, "he said.
Still, investors are more optimistic about their outlook for small capitals and regional regions. The PIPA survey released at the end of last year showed that the share of investors who felt regional markets were the most attractive had risen to 22%.
"If you add low supply levels along with once-per-generation interest rates into the mix, then real estate markets are set for strong terms for the foreseeable future," said Koulizos.
The latest figures from CoreLogic showed that home values ??already exceeded pre-COVID levels by 1% in January.
All capital cities and other areas in the rest of the state saw house values ??increase in the month, with Darwin posting the highest growth at 2.3%.
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