Off-the-plan enquiries surge as investors return to market
The new apartment can rejoice in some light at the end of the COVID tunnel, with new data pointing to the return of investors to market.
New home loan figures from the Australian Bureau of Statistics for December revealed that new investor loan commitments were up 10% compared to the same time last year. Flow on from this is rising interest in off-the-plan apartments.
Returning investor activity is set to boost the new apartment sector. Picture: Getty.
January is typically a quiet month for property seekers, but last month there was a record level of enquiry for new apartments on realestate.com.au.
Investors are particularly important to apartment developers because most units are owned by investors. COVID-19 border closures and rental crises in some parts of the country have discouraged investors over the past year and enquiry levels for new apartments have suffered as a result.
While the Federal Government’s HomeBuilder scheme, restricted to owner occupiers, has been a powerful tool in stimulating house and land development during the pandemic, there was nothing to encourage investor activity.
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On the flip side, a combination of an improving market, loosening up of finance and record low interest rates has led to particularly good conditions. The markets that are seeing some of the best growth in pricing, Western Australia and the Australian Capital Territory, also saw the biggest rise in enquiry levels for new apartments.
While WA and the ACT saw the biggest jumps in enquiry for new apartments, it was waterside areas that saw the highest levels. New apartments in Gold Coast suburbs were particularly popular, with Miles Residences in Coolangatta topping the list and X Kirra Beach and Tyde Residences -Tugun also ranking in the top 10.