Changes to lending have slowed down property investment.
The number of investors buying property is tipped to slow, despite new figures showing a slight increase in June.
CoreLogic analyst Cameron Kusher said while the latest Australian Bureau of Statistics figures showed a slight increase in lending to investors in June, he did not think that was a sign things were about to heat up.
In fact he said investor borrowing had been trending lower for some time and he expected that to continue.
Mr Kusher said policies put into place to discourage investment in the housing market by the banking regulator, APRA, were having an impact.
“If you are in investor you are limited in availability both by the availability of credit and by the availability of interest only mortgages,’’ he said.
“By comparison, the only discouragement in the market for an owner occupier is if you want to access an interest-only mortgage.’’
Mr Kusher believed demand from investors would be lower in the coming months.
“At the same time, a number of states are introducing greater incentives for first home buyers from July,’’ he said.
As a result he said there would be more competition from owner occupiers in the coming months.