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Fewer investors borrowed money during September according to the latest ABS figures. Picture: Thinkstock.
PROPERTY investors are dropping out of the market with new figures revealing they are at their lowest levels since earlier this year.
The latest housing finance figures from the Australian Bureau of Statistics have revealed an 8.5 per cent drop in financing to investors in September.
With a bit less competition in the market owner occupiers are picking up the slack.
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Property Council executive director residential, Nick Proud, said it appeared measures to tighten lending to investors was having an impact.
While he said that was working he warned they needed to keep a careful eye on any drops in lending to investors to make sure it didn’t go to low and affect the amount of rental stock on the market which could push up rents.
“We want to see the right balance in Australia’s housing market with a strong investment pipeline servicing the rental market, good opportunities for owner occupiers and new supply calibrated to keep pressure off home prices, †he said.
Mr Proud said the figures revealed that lending to owner occupiers increased by 3 per cent in September, which was also encouraging.
He encouraged governments to focus more on demand and supply and that was what would boost housing construction.