In recent years, after a sharp decline in the number of investors in the real estate market, the potential landlords have returned significantly. This is where they set their goals.
New lending to investors continued to surge in March, up 2.9% month-on-month and 48.4% more than a year ago, according to data just released by the Australian Bureau of Statistics.
New housing lending increased 1.6% in March, up 11.1% year-on-year. This is because buyers have taken advantage of the list surge seen so far this year.
Since 2014, it has been the busiest quarter for new listings in the capital.
Weekly provisional sales also fell from record highs recorded in December 2021, but remained strong in the first quarter of 2022. Perhaps it is driven by the urgency to trade prior to rate hikes.
Investors are much more active and may be fascinated by the prospects for a recovery in urban life, rental demand due to arrivals from abroad, and the generally tight rental market.
Investor activity may continue to be a hallmark of 2022. In particular, rent yields are likely to improve as home prices slow down and rental price pressures accelerate.
As migration returns, rental pressure is expected to increase further in the central apartment market. The number of searches for rental properties overseas has already increased rapidly, and it is expected that this will continue in the future.
The volume of properties listed for rent at the national level has been declining over the last few months, exacerbating inventory shortages and pushing up prices. Median advertising rents in the capital rose 1% in the three months to March 2022, and Australia as a whole rose 4.7% year-on-year. This is the strongest pace of rent growth since 2015.
Not only has new lending to investors surged, but there are other indicators that suggest that investors have resumed activity.
Comparing the volume of inquiries for different buyer types on realestate.com.au, investor inquiries have seen the largest year-on-year growth in the last 12 months.
The number of inquiries from investors to real estate agents increased by 58% year-on-year in the 12 months to April 2022. This is compared to a mere 11% increase from the person identified as the first homebuyer and a 31% decrease in inquiries from homeowner buyers.
Investors are returning to the market in a big way and are looking for units. Photo: realestate.com.au
Where did the investor look?
Investors are becoming more and more active in the apartment market.It’s probably not surprising Given the record high difference between home and unit pricesThis has increased interest in ancillary housing – now a more affordable option.
In fact, the volume of investor inquiries about unit lists is skyrocketing in all states. In Australia as a whole, the volume of unit inquiries from investors increased by 57% year-on-year.
New interest in the apartment market Comparing April 2022 to the same period last year, unit sales time is significantly lower than in most capital homes.
In Adelaide and Canberra, the median time to sell units has been reduced by 15 and 11 days, respectively, over the past year. This is constant in Canberra and compared to the time it takes to sell a home that is only 6 days down in Adelaide.
This is also the case in Brisbane, where the median time in the housing market has decreased by 3 days since April 2021, but the decrease in units has more than doubled in 8 days. ..
During the pandemic, housing demand exceeded units as people chose more space. Now that COVID-normal is underway and people are returning to major cities, there are signs that demand for units is beginning to recover.
This could be a by-product of a new focus from investors on the apartment market, in addition to increasing affordable price constraints for buyers after record highs in home prices last year. I have.
Now that mortgage rates are on the rise and borrowing capacity is declining, people priced from the housing market may continue to seek unit value.
The rejuvenated city center can also be the driving force behind the growing interest in pandemic units.
The rejuvenated city center market is attracting investors as the rental market is booming.Photo: Getty
Investors are looking at these suburban units
Interestingly See where home price premiums have expanded the most across the pandemic, It was a suburb of Brisbane. This means that the unit is relatively affordable compared to downtown housing and is more affordable than any other capital on a relative basis.
It’s probably not surprising to see Woolloongabba on the outskirts of Brisbane at the top of the league, with unit inquiries from investors jumping 245% year-on-year.
These are the most popular suburbs among investors in each state and territory.