Property investment

Property investment falls to a record low

PHOTO: Property investment in the Australian housing market 

As with a lot of things, the levels of property investment in the Australian housing market crashed during COVID.

But property investor activity in Australia has actually been falling since early 2015, when macro-prudential policies were introduced in mortgage lending.

The latest ABS housing finance data shows a recent acceleration of sorts. The percentage of finance lent to investors hit a record low of 23.5% in August.

As Eliza Owen, Head of Research for CoreLogic explains, this is significantly lower than the decade average of 36.1%.

“The decline of the property investor has been brought about by multiple factors,” she explained.

“These include temporary policies implemented between 2014 and 2019, which limited lending products favoured by investors; mortgage rate premiums for investor loans; less appetite for high LVR and interest only lending from the banking sector, and less certainty around prospects for capital gains.