Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Brokers to see investor clients return

Huntley Mitchell 1 minute read

More investors will re-enter the property market as volatility in Australia’s share market continues, a leading real estate group has forecast. 

LJ Hooker’s national research manager, Matthew Tiller, said the recent share market turmoil will increase the appeal of residential property as a viable investment.

“The current share market instability will have a lot of investors looking for a safer and less volatile investment, and real estate markets will benefit from this,” he said.

“Over the last quarter, data has shown that investors have been moving away from real estate due to higher interest rates, thanks to additional lending regulations from APRA.

“However, investors will begin to reconsider property, as they will see real estate as the lower-risk and higher-return option.”

Advertisement
Advertisement

Mr Tiller said the return of investors would provide a boost to slowing property markets.

“While this won’t lead to the strong levels of capital growth seen in 2015, it will see prices reach the upper end of forecasts,” he said.

The latest AFG Mortgage Index revealed that investor demand for home loans fell from 40 per cent of total loans processed early in the 2015 calendar year to 31 per cent in the December 2015 quarter.

[Related: Brokers warn investors as housing supply surges]

Brokers to see investor clients return
default
TheAdviser logo
default
more from the adviser
suncorp 850 Suncorp eyes growth in broker space

The chief executive of Suncorp is intent on bolstering the bank...

ABA 2020 ta Australian Broking Awards 2020: The full finalist list

The full finalist list for the Australian Broking Awards 2020, ...

woman keys ta FHBs confused over grants and schemes

There is a lack of knowledge among first home buyers about grants...

FROM THE WEB