Investors are Expected to Make a Market Comeback in 2021
With the record low-interest rates, first home buyer initiatives from the government, and surging demand for properties in Queensland, needless to say, the desire to enter the property market has been all-time high in recent months.
The latest Property Outlook Report by REA Insights revealed first home buyer inquiry was up by 62 per cent in 2020, while investor inquiry over the same period declined by 5 per cent. Not only the enquiry increased, but it is backed up by the Australian Bureau of Statistics with the record number of owner-occupier mortgage loan commitments among first home buyers. Among our hubs at Coronis, in January 2021 alone our team experienced a 20 per cent increase in enquiries from all buyers.
The increase of buyers and low property stock create competition which drives property prices up. For first home buyers who are trying to enter the property market, such conditions are not ideal. This means the demand from them will soon slow down as property prices increase across the country and government initiatives slowly ease, but investors will make a market comeback.
The trend of investor recovery expected to extend into 2021, with regional markets and Southeast Queensland properties forecasted to be in demand. The latest data revealed that these areas produce the highest rental yields and these areas are in high demand due to the close proximity to Brisbane CBD.
If you’re thinking of expanding your investment portfolio, you might want to check what mortgage loan options might be available for you.
If you have any questions about what’s been happening in the property market, speak to your property manager.