Realmark managing director John Percudani has observed this within WA due to the strong rental market, prospect of good yields and relatively affordable property.
According to the data, November had the highest loan figures on record, peaking at 2,211.
Mr Percudani said if the investor activity continues to perform at a high rate, we should see an improvement in the current supply and demand in the rental market.
However, REIWA advised that their data does not yet show an increase in the number of rental properties, indicating that the imbalance remains for now.
While loans to investors experienced a surge, the number of new owner-occupied loans witnessed a decline by 12.25 per cent compared to the previous year. There was also a decline in new builds, existing dwellings, and land.
In 2023, owner occupied loans for existing dwellings accounted for 71 per cent, with only 13 per cent allocated to new builds.
This is a shift from 2021, where new builds accounted for 22 percent of the loans, with existing dwellings at 63 per cent.
“A contributing factor to the new build loans decreasing would be due to the State and Federal Government COVID building incentives ending,” he said.
“As well as the increase in the cost of construction and the huge delay in completion times, making many people lose confidence in the building industry.”
The data also reveals a decrease in the number of new loans to owner occupied first home buyers by 12 per cent in 2023, although they still represent 35 percent of new owner-occupied loans.
“It comes as no surprise considering the competitive market, interest rate hikes and the conclusion of the building incentives,” he said.
For more information or real estate assistance don’t hesitate to contact Realmark on 9328 0999.