What investors are looking for in Australian properties based on Urban data
While first home buyers continue to dominate the market, investment interest remains strong, with 1 in 4 Urban.com.au property enquiries being made by investors.
Earlier this year we reported on the surge of confidence of off-the-plan property buyers which has been attributed to policy legislation (negative gearing to remain coupled with the abolishment of the decision to half capital gains tax). The Reserve Bank of Australia also cut the official cash rate to an all-time low, in addition to APRA’s announcement of a lowered minimum interest rate serviceability buffer – bringing about the rise of a borrower’s market.
With investment acquisition maintaining a steady interest despite the property market turbulence, we were curious to discover which properties are popular among investors across Australian properties.
Based on Urban.com.au data, the most popular apartment configuration is the 2-bedroom, 2 bathrooms; closely followed by the 3-bedroom, 2 bathrooms. A surprising statistic we revealed in our research found that 19% of investors are searching for high-end brand-new apartments priced at $1 million and higher.
The most popular price range among investors is between $400,000 to $600,000, which is on par with the searches made by first home buyers and next home buyers.
Our data also showed that across all buyer types, investors are the most likely to compromise on parking, with 13% of off-the-plan property enquiries excluding carpark facilities. This compares to 11% of searches made by first home buyers, and 7% of searches made by next home buyers. This could be a representation of the priorities held by each property seeker.
A DROP YEAR ON YEAR
In the last 3 months, investors have represented 25% of the property enquiries on Urban, which is a comparative drop considering the share of investor enquiries was at 32% in 2018. This could be due to a rise in first home buyer interest as a result of more lenient lending opportunities. It'll be interesting to see which way the market shifts by Q4 2019.
GREAT OFF-THE-PLAN INVESTMENT PROPERTIES WORTH CHECKING OUT
VICTORIA SQUARE, VIC
Architect: Kavellaris Urban Design, Fender Katsalidis
Developer: Growland Group
Builder: LU Simon
Situated in the heart of Footscray, Melbourne Square brings to market a long list of world-class facilities including a private cinema, state-of-the-art gym, outdoor running track, and heated indoor pool to name a few. The property is popular among investors for its stellar location, affordable price-point and superior amenity offering.
443 QUEEN ST, QLD
Architect: Architectus, WOHA
Developer: Cbus Property
Builder: Probuild
Brisbane is due to welcome an exciting new addition to its waterfront, 443 Queen Street. The development is a favourite among eco-conscious buyers, who will enjoy living amongst nature with world-class landscaping and vertical planting adorning the tower. 443 Queen St offers fantastic communal areas for residents to relax and unwind, which will be one of this building's excellent selling points on the rental market.
Lead image credit: WOHA
