Investors immune so far to credit crunch

Mortgaged investors’ share of buying is steady at about 24%, which CoreLogic senior property economist Kelvin Davidson says is where it’s been since the middle of last year, down from close to 30% in early 2021.

“Tight LVR rules and the phased removal of interest deductibility, as well as the delicate mix of low gross yields versus rising running costs such as mortgage rates are seemingly subduing investor demand,” says Mr Davidson.

Cash investors are also relatively quiet at 12% share, but Davidson says they could play a more prominent role this year, as reduced competition for a larger selection of listings plays into their hands, along with relocating owner occupiers.

“We’ve been expecting relocating owner-occupiers or ‘movers’ to also increase their market share this year, as the rise in listings starts to give them more choice.