Following the onset of COVID-19 in 2020, many property investors exited the market, anticipating a fall in the value of homes and their rental income. However, the reopening of international borders, low borrowing rates and record high rental demand have prompted many to make a return.
Signs of this were apparent in the Australian Bureau of Statistic’s new lending data, where the dollar value lent to investors was at a historical high in January this year.
Investor lending now accounts for almost a third of all new lending – the largest share since February 2018.
A recovery in investor interest is eventually needed to bring relief for renters who are facing immense competition due to low rental vacancies and a decline in total properties available to rent.
To answer the question of where investors are looking and where rental supply may improve, we examined one key metric: the growth in the number of email enquiries that investors were sending to agents in February 2022 compared to February 2021.
Regions in Queensland saw considerable growth in investor enquiries with, Ipswich topping the list with a whopping 152% increase compared to February last year.
Enquiries in the regions of Darling Downs – Maranoa, near Toowoomba; Mackay – Isaac – Whitsunday, south of Townsville; and Logan – Beaudesert, south of Brisbane also saw large increases with investors potentially hoping to benefit from strong interstate migration into Queensland, particularly in these coastal and nature-rich areas.
The Mackay – Isaac – Whitsunday region saw one of the largest increases in investor enquiries. Picture: Getty
The Barossa – Yorke and Mid North region, just north of Adelaide, and Perth – North East and Perth – South East regions also saw a surge in the number of enquiries from investors.
Situated on the outskirts of their respective capitals, these regions are not only a commutable distance to their CBDs but they offer a nature-bound lifestyle as well. These attributes have driven up rental demand and in turn have attracted investors.
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Investor enquiries also rose substantially in the Darwin region with one drawcard being high rental yields. The return on an investment property in this region is among the highest in SA4 regions nationally.
Relative to both Sydney and Melbourne, Darwin median house and unit values are much more affordable.
A recovery in investor interest is eventually needed to bring relief for renters who are facing immense competition due to low rental vacancies and a decline in total properties available to rent.
To answer the question of where investors are looking and where rental supply may improve, we examined one key metric: the growth in the number of email enquiries that investors were sending to agents in February 2022 compared to February 2021.
Regions in Queensland saw considerable growth in investor enquiries with, Ipswich topping the list with a whopping 152% increase compared to February last year.
Enquiries in the regions of Darling Downs – Maranoa, near Toowoomba; Mackay – Isaac – Whitsunday, south of Townsville; and Logan – Beaudesert, south of Brisbane also saw large increases with investors potentially hoping to benefit from strong interstate migration into Queensland, particularly in these coastal and nature-rich areas.
The Mackay – Isaac – Whitsunday region saw one of the largest increases in investor enquiries. Picture: Getty
The Barossa – Yorke and Mid North region, just north of Adelaide, and Perth – North East and Perth – South East regions also saw a surge in the number of enquiries from investors.
Situated on the outskirts of their respective capitals, these regions are not only a commutable distance to their CBDs but they offer a nature-bound lifestyle as well. These attributes have driven up rental demand and in turn have attracted investors.
More from Insights
Investor enquiries also rose substantially in the Darwin region with one drawcard being high rental yields. The return on an investment property in this region is among the highest in SA4 regions nationally.
Relative to both Sydney and Melbourne, Darwin median house and unit values are much more affordable.
As we enter a period of near normalcy, we expect investors to continue returning to the housing market. This will bring more choice and less competition for renters.
Though their current interest lies in regional areas, we are likely to see some shifts to inner-city markets following the return of international students and reawakening of offices.
As we enter a period of near normalcy, we expect investors to continue returning to the housing market. This will bring more choice and less competition for renters.
Though their current interest lies in regional areas, we are likely to see some shifts to inner-city markets following the return of international students and reawakening of offices.
article by realestate.com.au