Investors continue to form the backbone of new business activity in the property market, a recent report has found.
According to PRDnationwide’s Quarterly Economic & Property Report, investors now account for 36.8 per cent of all financial housing commitments in Australia – the largest amount since December 2003.
In addition, investor financial commitments have now eclipsed $8 billion.
The findings of the report are reflected in broker sentiment.
According to mortgage industry magazine The Adviser's quarterly sentiment survey, 34.7 per cent of brokers expect the investor market to be the most active over the coming period.
However, the bulk of brokers still expect refinancing to provide the greatest market opportunities, with 50.8 per cent of respondents indicating this market will be the most active over the coming quarter.
PRDnationwide research director Aaron Maskrey said on a state-by state basis, Victoria continued to record the highest number of dwelling commencements during the March quarter, representing 34 per cent of all national dwellings.
“It is anticipated that dwelling investment will grow by 7.5 per cent during 2010 to 2011,” Mr Maskrey said.
According to Mr Maskrey, this is not unrealistic growth given that the median house price in Australia climbed on average by 12.1 per cent in May.
Melbourne recorded the biggest increase of 18.2 per cent while Darwin prices rose 16.8 per cent. Perth recorded the smallest increase of 6.1 per cent, where the median price currently sits at $310,050.