Australia's property hotspots: Investors and first home buyers

The Australian property market is dynamic, and influenced by a complex interplay of economic factors, investor sentiment, and buyer demand. Understanding where the most significant lending activity occurs can provide valuable insights for investors and homebuyers.

Recent lending data has highlighted a notable shift in investor and first-home buyer behaviour nationwide. Let's delve into the regions experiencing the most significant uptick in lending activity.

Lending can indicate investor and home buyer hotspots

So where are Australia's property investor and first home buyer hotspots?

Investor Activity Heats Up

The latest data from CoreLogic reveals a surge in investor activity over the past year, with Western Australia (56.7%) experiencing the fastest growth, followed by South Australia (38.3%) and Queensland (34.5%). These states have also seen significant capital gains, making them attractive targets for investors.

Investor Lending (Source: Core Logic - Monthly Housing Chart Pack - August 2024)

First-Home Buyers Find Their Footing

While investors continue to dominate the market, first-home buyers are demonstrating resilience. After a slight decline in May, mortgage approvals for first-home buyers rebounded in June, reaching $5.3 billion.

Nationally, first-home buyers account for 29.2% of new owner-occupier finance. However, the trend is more pronounced in the ACT and Victoria. These regions have seen a substantial increase in first-home buyer activity, with combined lending reaching almost one-third of all owner-occupier finance.

First Home Buyer Lending (Source: Core Logic - Monthly Housing Chart Pack - August 2024)

By understanding these lending trends, both investors and first-home buyers can make more informed decisions about where to focus their property search and take advantage of Australia's property investor and first home buyer hotspots

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Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.