Hotspot for Property Investors
Reduce Home Loans’ first-quarter sales data has revealed that property investors in New South Wales and Victoria continue to dominate the mortgage sector overall. Accounting for the location of nearly two-thirds of all properties settled in the period and the highest average values, the Sunshine State remains the firm favourite for investors.
Queensland was the third most popular state by sales volume, behind NSW(first) and Vic.(second). However, when comparing the mix of investment vs owner-occupied mortgages it had the highest proportion of investments overall, sitting at 58% compared to 51% in Vic. and 44% in NSW.
Cementing its position as an investor hotspot, Queensland also had the highest proportion of interstate applicants with 42% of applicants coming from other states, and all of those sales being for investment purposes. This compares to 15% of interstate applicants in NSW and just 3% in Vic.
Josh Beitz, Reduce Home Loans General Manager, said: “The continued population growth we’re seeing, particularly in the south-east pocket of Queensland, has created a healthy demand for housing and it is no surprise to us that investors – who are enjoying historically low-interest rates – are attracted to this region.”
‘The Queensland market clearly also represents great value for investors as the median house price is significantly lower than in Victoria and New South Wales. This is reflected in our sales with the average Qld investment mortgage sitting at $317,300, compared with $393,265 for NSW and $384,833 for Vic.
‘This is also lower than the national average for investment mortgages which was $359,742 for the quarter.’
The data also revealed that in the first quarter:
- The national average value for all mortgages sat at $379,934, with the average owner-occupied mortgage sitting slightly higher at $397,007.
- The national average age for mortgage applicants was 42 years, with the youngest average found in Vic. (39 years) and the oldest average in ACT and Qld (both 45 years).
- The youngest applicant nationally was 23 years – for an owner-occupied mortgage in NSW.
- The oldest applicant nationally was 65 years – for an owner-occupied mortgage in South Australia.
- The split between mortgage types was 54% owner occupied vs 46% investment.\
- The highest average value for investment mortgages was in NSW ($393,265) and the lowest in Tas. ($134,900).
- Joint applications for owner-occupied mortgages significantly outnumbered single applications (66% joints vs 34% singles), however, the applications sat equally for investment mortgages (50% joint and 50% single).
- The average value for a joint application sat at $392,328 – which was about $30,000 higher than the value for a single application ($362,389).
For further analysis of the data see the below infographic.