Investors pounce on NSW and Queensland as first homebuyers retreat
Posted on Tuesday, December 04 2012 at 12:29 PM
Since the $7000 first homebuyer grants have been withdrawn from New South Wales and Queensland, first homebuyer finance demand has plummeted, however investors are living it up, according to the Australian Finance Group (AFG) Mortgage Index.
In Queensland last month AFG
arranged only 96 home loans worth $31 million for first homebuyers, compared
with 265 mortgages worth $79 million the month prior.
In NSW over the months of
October and November AFG arranged less than half of the 219 home loans worth
$83 million in September.
AFG general manager of sales and
operations Mark Hewitt says the trend is significant and is of great concern
for the overall property market given that first homebuyers are “the lifeblood
of the property market”.
“When activity
stagnates at the entry level, it affects
everyone up the property chain. By contrast, both New South Wales and
Queensland are enjoying strong support among property investors right now,” Hewitt says.
“We could be seeing the
transition to a generation of renters unless more is done to
help people onto the property ladder.”
In property investor
demand terms, NSW leads the nation with 41.1 per cent of all loans in the state
arranged for property investors; in Queensland the figure is 33.4 per cent.
First homebuyer
demand for finance in November was strongest in Western Australia, where 23.6
per cent of new home loans were arranged for this market segment, higher than
NSW’s 5.4 per cent proportion and Queensland’s 5.5 per cent.
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