Investors return to property market
June 23, 2009
The Real Estate Institute of Australia (REIA) President, David Airey, has said there is increasing evidence that investors are starting to return to the property market, due to attractive yields, low interest rates and the ability to earn a positive return.
“First home buyers have dominated the property market for the past 9 months as a result of decreasing interest rates and the First Home Owners Grant Boost (FHOG Boost), however, we are now beginning to see signs of investors returning to the market,” he said.
In April, the seasonally adjusted value of finance commitments for investment housing increased for the second consecutive month.
“This is the first time investment in housing has increased for two consecutive months since mid 2007,” Mr Airey noted.
The rise in April was due to increases in finance commitments for the purchase of existing dwellings while for the investment of newly constructed dwellings, there was a decline.