It seems as though the Australian real estate market in 2013 will be ending on a strong note, after new data from the Australian Bureau of Statistics (ABS) showed a rise in home loans by investors.
The ABS data for the month of October displayed an overall confidence in the property market, which is an encouraging sign for homeowners who wish to sell their home in the new year.
According to October's figures, the number of home loans obtained by owner occupiers increased by 0.6 per cent in trend terms. This is another month where this type of home lending has risen, after experiencing growth of 0.7 per cent and 0.8 per cent over September and August, respectively.
Investor presence rises
One trend that has been evident over the last few months is the growth in real estate investment.
In October, the value of home loans for investment purchases rose by 2.9 per cent in trend terms.
Interestingly, this figure has been on the rise for almost two years, demonstrating the positive sentiment investors have in the current real estate market.
Whether it's due to the low interest rates on offer by mortgage lenders, rising property values or strong rental yields in certain cities, investors have indeed made their presence known in many parts of the country.
Growth in rental market attracting investors
A September report from the Australian Property Monitors (APM) detailed the various yields and median rent growth across the country.
Real estate in Perth, including houses and units, was the top performer for year-on-year median rent growth. Units experienced a 10.5 per cent rise in weekly median rent, while houses saw a 6.7 per cent increase.
However, real estate in Darwin posted some of the highest rental yields in the country. A combination of high rents and low purchase prices has helped to boost rental yield up and attract investors into securing rental properties throughout the region.
The bulk of investor activity has been focused in Sydney, according to APM Senior Economic Dr Andrew Wilson. This is despite the "rising house prices and flat rents" that have been evident in the market.
Over the final quarter, the SQM Research Housing Boom and Bust report predicts strong growth for most state capitals. He expects this activity will continue heading into 2014.
"The housing recovery that commenced in the 3rd quarter of 2012 for most capital cities is now about to enter into a more accelerated phase from what has generally been modest price rises to date," said SQM Research Managing Director Louis Christopher.
