 Property investors eye up the market
Real estate in Australia is set to remain steady, despite the imminent decrease of first home buyers. With the boost to the first home owners grant due to be reduced in the next few months, this sector of buyers is slowing down from the rush seen earlier this year.
However, property investors are coming back to the market and can fill the gap.
Industry experts are confident the 20 per cent drops seen in the UK and the US will not be seen here.
In the US, in particular, the problem is the opposite to us where we have not enough supply and too much demand. In the US, there is too much supply and not enough demand.
"Fundamentally, America has 1.1 million properties in oversupply," says Damon Nagel, the managing director of property investment company Ironfish.
"In Australia, it’s more than 180,000 in undersupply. We can keep building for 18 months and only catch up to demand."
Investors, rather than owner occupiers, will be the dominating buyer once the Federal Government
First Home Owner Grant starts to wind down from September 30.
Reports indicate that low interest rates, solid growth in rents and housing shortages are evident in most markets.
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