Investor owned dwellings are heavily concentrated within the inner city apartment markets | Tim Lawless

A large proportion of housing demand is currently being driven by investment.

Unfortunately in Australia we only receive information on owner occupier and investment ownership of properties every five years with the Census.

Because of this RP Data’s Analytics team have built a set of rules to determine the probability that a home is owned by either an investor, owner occupier or the Government.invest money house 9

The Reserve Bank has specifically noted that they have concerns with the high level of speculative investor activity, specifically in Sydney and Melbourne.

The following thematic maps show the capital cities and measure the proportion of homes owned by investors across each region.

The geographic trends in investor activity are very clear from these maps; investors are heavily concentrated within the inner city apartment markets.

The below maps clearly highlight that investors overwhelmingly focus their attention on inner city unit markets.

When the Reserve Bank raised concerns that there is too much investor activity taking place, it is also clear that the concentration risk is very much centred geographically within these inner city unit markets.

If we did see investors pulling out the market ‘en masse’ or investor demand dry up for one reason or another over a short frame of time, then there is a heightened risk of declines in market value.

Adelaide houses

Adelaide units

Brisbane houses

Brisbane units

Canberra houses

Canberra units

Darwin houses

Darwin units

Hobart houses

Hobart units

Melbourne houses

Melbourne units

Perth houses

Perth units

Sydney houses

Sydney units



Want more of this type of information?


Tim Lawless

About

Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au


'Investor owned dwellings are heavily concentrated within the inner city apartment markets | Tim Lawless' have 1 comment

  1. October 12, 2014 @ 8:29 pm George

    I dont know about the other cities but IN SYDNEY the areas where there are high concentrations of investor ownership are also the areas of high concentrations of apartments. It is natural for investors to prefer apartments over houses for many reasons. So all these heat maps tell us is where there are high concentrations of apartments. Nothing more and Nothing new here.

    Reply


Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

0
0

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!