Investors well and truly back in the market

Lending to investors since the post-pandemic low has grown 68% and 39% in the past year alone.

While in the past, property investors were willing to accept lower rental yields, given the historic trend of steady and sometimes large capital gains that were often tax-free, conditions are now different.

Price gains are muted and only moderate rates of house price growth are expected over the coming year, even with interest rates at low levels.

Westpac senior economist Satish Ranchhod says investors who are now getting into the market are more focused on rental yields and long-term growth.