Property investors are make their presence felt again in the real estate space, but they should try to tweak their strategies to make the most out of the current market conditions, experts say.
The latest figures from the Australian Bureau of Statistics (ABS) are showing a continued upwards movement in the share of investors.
From the recent trough of 22.89% in November 2020, property investors comprised 29.11% of the new housing loan commitments in May 2021.
REA Group senior economist Eleanor Creagh said the heightened activity from investors was apparent across all states.
"The combination of low borrowing costs, ongoing capital growth and attractive rental yields is clearly enticing investors into the market," Ms Creagh said.
Top spots for investors
Data from REA Group showed South East Queensland is currently the top spot for investors this year.
Greater Brisbane, Darwin, and regional Queensland have also shown strong year-on-year increases in investor enquiries on realestate.com.au.
"Looking specifically at enquiries for units, it seems investors have shaken off any reservations they may have had of a perceived oversupply in Brisbane," Ms Creagh said.
"When it comes to investors enquiring about houses, the growth has been in both Brisbane as well as coastal Queensland markets."
Logan-Beaudesert, Moreton Bay south, and Ipswich SA4 regions are the most popular among investors.
Darwin and regional South Australia are getting a lot of traction among up-and-coming investors.
Enquiries in Melbourne's market are also on the rise.
It appears the relative affordability and the tight rental markets in these areas are encouraging investors to explore opportunities.
Investors are also considering where future buyers and tenants would want to live.
Ms Creagh said the exodus of people from the biggest markets in New South Wales and Victoria are likely to benefit smaller states like Queensland.
"Many people have not only chosen to escape lockdowns but also seek relative affordability in Queensland,” she said.
“More sun, less traffic and the potential to upsize have all been cited as drivers of northbound flows.”
How much investors are willing to spend
In terms of median prices, the sweet spot for investors rests at $650,000 for houses and $495,000 for units.
These average median prices have been steadily increasing since 2019.