This surge of activity signals market buoyancy and future growth.
The Australian property market has experienced a notable uptick in investor activity, with new housing loans to investors climbing 10.4% higher than in 2022 and rising a remarkable 37.3% from 2021,
The latest lending data from the Australian Bureau of Statistics (ABS) highlighted this growth, marking a robust recovery and investor confidence in the market. In November alone, the monthly loan figures peaked at 2,211, setting a new record for investor engagement in the property sector.
Anyone with even a passing interest in Australian property will have taken note of Perth's recent performance.
Real Estate Institute of Western Australia (REIWA) CEO Cath Hart expressed optimism about the increased investor participation in the market.
“WA lost a significant number of rental properties from the market post-COVID,” Hart said. “Our tight rental market needs every property it can get, so it is good to see investor loans increasing.
“Unfortunately, despite the increase, our data does not yet show an increase in the number of rental properties, so the significant imbalance between supply and demand in the rental market remains.”
Hart noted that while the loan statistics did not reveal the geographical location of the investors, there has been significant engagement from investors in the eastern states in 2023, as reported by REIWA members.
“They’re drawn by the value our market is offering,” she said. “Despite increases over the past few years, our property prices are much more affordable than the east coast and we’ve had significant rent price growth.
This means properties have the potential for very good yields.”
The data also showed a marked interest from investors in construction projects, evidenced by a 21% increase in loans for land and a significant 52.7% surge in building loans in 2023.
“Builders and developers have also been reporting strong sales to eastern states investors,” Hart said. “This is good news and will boost rental supply in the longer term as these houses are completed.”