Property investor activity in Australia in 2024 reveals a complex picture, with national investor loans up by 18.8% but marked regional and behavioural differences, according to the latest CoreLogic insights.
Eliza Owen (pictured above), head of research at CoreLogic, said that despite high interest rates and increased taxes deterring some property investors, others remain active, particularly in states with strong capital growth like Queensland, Western Australia, and South Australia.
On one hand, existing property investors are offloading properties due to rising costs and regulatory pressures. Yet, data from the Reserve Bank and ABS indicated an increase in investor loan commitments, suggesting a resurgence in demand.
“The high demand for investment purchases relative to investors selling may have also contributed to the decline in total investor listings through October,” Owen said in a Pulse article.
The balance between new loans and property listings varies significantly by state.
New loans are concentrated in high-growth markets like Queensland and Western Australia, while property investor listings remain elevated in areas like Victoria and Tasmania, where capital growth is weaker.
For instance, Victoria’s property investor listings were up 10.6% compared to the five-year average, with subdued new loan activity due to soft market conditions and increased land tax burdens.
Conversely, in Tasmania, rising listings reflect declining home values and high interest rates.
The dynamics of property investor participation are changing. According to the Reserve Bank of Australia, less leveraged investors are replacing those with higher debt levels.
Additionally, more first-home buyers are entering the market as property investors, seeking affordable entry points.
While national investment activity remains strong, recent trends suggest a cooling in new loan commitments since April 2024. High interest rates and fewer affordable opportunities in growth areas may temper property investor demand, potentially leading to steadier activity levels by year’s end, CoreLogic reported.
Visit the CoreLogic website for more insights about property investors.
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