Investors return to property market: AFG
By
Tim Neary
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9/03/2010 12:00:00 AM
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After a lull over the summer holidays property investors are flocking back to the market, according to a new report from AFG.
The AFG Mortgage Index out today shows 34.1% of all mortgages arranged nationally in February were for property investors - 25% up the August 2009 figure.
Investor activity was particularly high in NSW (38.5%), Victoria (37.2%) and SA (37.6%).
It was lowest in WA (29.9%) and Queensland (29.5%).
Investors are now the driving force in the market encouraged by rising property prices, said AFG's general manager for sales and operations Mark Hewitt.
"Investor confidence has been riding for several months but we hadn't been expecting February's figures to be as strong as this," he said.
Furthermore, AFG data showed the market share of second tier banks continues to strengthen with the sector accounting for 17% of all new loans. This is up more than 100% on the same period last year.
The data also shows that first home buyers continue to leave the market. Loans arranged for this group fell to 11.3% in February - other than in NSW where the figure grew to 16.2%.
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