Benefiting from the increase in housing prices and yields in suburban and rural areas, investors are expected to return to the market this year.
“The upward momentum in prices is attracting investors to return to the market, especially in small cities. In Sydney and Melbourne, investors are moving to town centres, detached houses and outer suburbs. In contrast, in the context of weak demand, Due to supply uncertainty, there is still a little cloud over the inner city.” Since 2019, the Australian housing market has hardly seen investors. In May 2020, the number of investors dropped to an 18-year low. Owners, especially first home buyers, filled this vacancy, and the proportion of investors in the market fell below 30%. But recent data from the Australian Bureau of Statistics (ABS) show that this situation is changing. November data showed that investor loans increased by 6% ($5.6 billion) month-on-month.
NAB said the increase in confidence brought about by record low interest rates and the resilience of housing prices during the epidemic are stimulating investors to return. A spokesperson said: “Although we expect the investor market will continue to grow, it is likely to be uneven, and demand for single-family houses should exceed that of apartments.” NAB’s latest residential real estate survey released in November showed that professionals expect that, In the next 12 months, investor demand will rise and occupy a larger market share.
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