Lending restrictions to blame for undersupply: PIPA
By Bianca Dabu
10 May 2021
|
1 minute read
SHARE
The current rental undersupply was years in the making – a result of the lending restrictions that were implemented in 2017, according to one property expert.
Many capital city markets have been hitting record-low vacancy rates, with the quick absorption of properties ultimately leading to a critical undersupply.
While this trend appears to have emerged as the property market rebounds from COVID-19, the pandemic may not be entirely to blame, Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos said.
According to Mr Koulizos, the lending restrictions that kicked off in March 2017 saw a significant decline in investor activity, which has resulted in a limited supply of rental stock coming into the market.
Mortgage Business
Lending restrictions have led to rental undersupply: PIPA By Annie Kane 10 May 2021
Restrictions that were brought in to curb investor lending in 2017 have led to a “critical undersupply” of rental properties in capital cities, according to the group.
The chairman of the Property Investment Professionals of Australia (PIPA) has suggested that rental market vacancies, particularly in smaller capital cities, are near all-time lows as a result of historic lending curbs, exacerbated by the COVID-19 pandemic.
PIPA chairman Peter Koulizos stated that a number of capital cities (excluding Sydney and Melbourne), as well as regional locations, currently had vacancy rates of less than 1 per cent – noting that this is well below what is considered to be “balanced” vacancy rates (3 per cent).
Property market update: Brisbane, January 2021
By Zarah Mae Torrazo
17 February 2021
|
1 minute read
SHARE
Brisbane’s property market remained resilient over the last year despite the economic impact of COVID-19. But will the Sunshine State’s capital continue to dazzle investors in 2021? p span style font-weight: 400; According to data, Queensland appears to have outstripped the other states in 2020. /span /p p span style font-weight: 400; The span class b-autolinkshadowbox Sunshine span class b-autolinkshadowbox links a href https://www.smartpropertyinvestment.com.au/data/nsw/2264/sunshine Sunshine, NSW /a a href https://www.smartpropertyinvestment.com.au/data/vic/3020/sunshine Sunshine, VIC /a /span /span State recoded solid demand for detached houses, with buyer attraction towards lifestyle areas seen to deliver 6-10 per cent capital growth in 2021 across South-East Queensland. /span /p
Brisbane’s appeal grows as investors return to the market
By Bianca Dabu
04 February 2021
|
1 minute read
SHARE
Dwelling prices are expected to rise as investor activity continues to strengthen across the nation, with Brisbane touted as more appealing than its capital city counterparts, a recent report has revealed.
After surviving a particularly low point in May last year, the residential property market is picking up pace with investment activity set to “ramp up” following a strong January, the Property Investment Professionals of Australia (PIPA) have said.
“The low point for investment activity was May last year; however, new loan commitments have grown since that time to be about 10 per cent higher in December than the same period the year before,” said PIPA chairman Peter Koulizos.
Regional property value growth three times higher than capital cities
Regional property value growth three times higher than capital cities Tuesday, 12 January 2021
The value of homes in regional markets has grown by almost 7% over the last 12 months – more than tripling capital city property value growth on average – according to CoreLogic.
While there was initial volatility caused by the economic impacts of COVID-19, the most recent data from the property research group saw the year finish on 3% growth across the nation, with regional housing demand outweighing supply.
“Record low interest rates played a key role in supporting housing market activity, along with a spectacular rise in consumer confidence as COVID-related restrictions were lifted and forecasts for economic conditions turned out to be overly pessimistic,” CoreLogic’s research director, Tim Lawless says.