Real estate professionals all across Australia are reporting a significant increase in activity from investors who are increasingly aware of the strong markets, particularly in Regional NSW and smaller capital cities with rising prices and very low vacancy rates.
The latest loans data suggests that investors are starting to join the buying trend with the number of property investor loan commitments returning to pre pandemic levels, according to figures from the Australian Bureau of Statistics.
The ABS Lending Indicators for September indicates that more than $5 billion of new investor loan commitments were recorded that month – a similar value to February 2020 before the onset of the pandemic impact. The number of investment loan commitments also increased 5% in September, after recording a monthly rise of 9% in August, according to the ABS.
Investors Confidence Hits a 7 year High
New research from ING has found that Australian’s interest in the property market has been largely unaffected by the pandemic with confidence levels reaching a 7 year high, despite the COVID pressures.
In a survey of 2,075 Australians, nearly half (44%) viewed property as the current strongest investment option and over a quarter (26%) believed now is the best time to get a foot on the property ladder.
1 in 4 Australians have shown that they are eager to enter the market to combat the detrimental impact of the pandemic.
“The research suggests COVID-19 has left many Aussies cautiously thinking about how they can invest to take greater control of their financial future,” said ING’s head of home loans, Julie-Anne Bosich.
Although, understandably, not everyone is in the position to use their finances to invest, the research shows that many Australian’s confidence levels are high and they are still looking towards property as a preferred investment choice, especially in the current climate where interest rates are at a record low.