Investors dive back into market

Investors dive back into market

07 June 2011 by Staff Reporter 0 comments

Staff Reporter

Investors appear to be taking advantage of the softer market conditions, with mortgage sales rising 18.8 per cent in May.

According to the latest AFG Mortgage Index, total mortgage volume for May was $2.5 billion – just 1.7 per cent lower than the figure recorded for May last year.

Victoria and New South Wales saw the biggest month on month upswings in mortgage volumes, increasing by 27.2 per cent and 23.3 per cent respectively.i

Both states also had the highest proportion of investment loans with 38.8 per cent of loans in Victoria and 37.9 per cent of those in New South Wales, processed for investors. May also saw a surprise increase of investment loans in Queensland, up to 36.5 per cent - its highest such figure for well over a year.

AFG general manager of sales and operations Mark Hewitt said while property investment has remained at consistent levels throughout the ups and downs of the property cycle, it strengthened significantly in May.

“It is certainly a buyer’s market right now, and investors looking at rising yields are probably better insulated from the impact of rising interest rates than other types of buyers,” he said.

Staff Reporter

Investors appear to be taking advantage of the softer market conditions, with mortgage sales rising 18.8 per cent in May.

According to the latest AFG Mortgage Index, total mortgage volume for May was $2.5 billion – just 1.7 per cent lower than the figure recorded for May last year.

Victoria and New South Wales saw the biggest month on month upswings in mortgage volumes, increasing by 27.2 per cent and 23.3 per cent respectively.i

Both states also had the highest proportion of investment loans with 38.8 per cent of loans in Victoria and 37.9 per cent of those in New South Wales, processed for investors. May also saw a surprise increase of investment loans in Queensland, up to 36.5 per cent - its highest such figure for well over a year.

AFG general manager of sales and operations Mark Hewitt said while property investment has remained at consistent levels throughout the ups and downs of the property cycle, it strengthened significantly in May.

“It is certainly a buyer’s market right now, and investors looking at rising yields are probably better insulated from the impact of rising interest rates than other types of buyers,” he said.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?