Investors continue their strong presence in the property market

18.10.13bSydney investors are doing well out of the property market, with national figures demonstrating stronger growth for investors when compared with the owner-occupied market.

Recent data from the Australian Bureau of Statistics (ABS) found, in trend terms, that the last 12 months to December 2013 was the slowest growth period for the owner-occupied real estate market since 2012.

However, the Australian property investor market showed strength, with investment housing values growing by 3 per cent in trend terms during December. Consecutive monthly increases have been occurring in this area of the market for almost three years, according to the Real Estate Institute of Australia (REIA) in a February 11 statement.

By contrast, the owner-occupied market has shown slower growth, indicating investors are potentially doing better out of property booms in capital cities such as Sydney – a key driver of national increases in dwelling values over 2013.

Owner-occupier growth behind investment growth

Owner-occupied finance commitments grew by 0.6 per cent during December 2013.

The REIA noted that owner-occupied market growth during December 2013 was the slowest since December 2012, in trend terms, based on figures from the Australian Bureau of Statistics.

However the state of NSW¬†had one of the biggest rises, with owner-occupied finance commitments rising by 1 per cent. By contrast, the Northern Territory saw a 2 per cent drop – the country’s largest.

Sydney fights ahead

Despite lower national owner-occupier growth rates, recent data has suggested that the Sydney property marketing is fighting ahead.

Activity in the NSW state has led growth trends in 2013, particularly during the December quarter.

Capital gains values soared 13.4 per cent over the 12 months to January 2014 in Sydney, according to RP Data. It also noted that given population growth estimates, access to affordable credit and “positive consumer sentiment”, prices in the Sydney market are unlikely to decline “in the near term.”

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