5 . The return of investors
Investors are back but their return has certainly not been as rapid or as strong as owner-occupiers . Owner-occupiers have borrowed almost $ 9.5 billion more in April 2021 than they did at the start of the pandemic . Over the same time period , investors have borrowed $ 3 billion more .
The slower return of investors is not surprising . Rental markets were tough early on in the pandemic and the six month moratorium on evictions , while necessary , was a difficult time for many landlords . Incentives introduced during 2020 such as HomeBuilder were unavailable to investors .
With prices powering ahead , and finance readily available , it ’ s expected that this growth in investor activity we have seen so far this year will continue .
NEW HOUSING LOANS , AUSTRALIA
35,000
30,000
Total New Loan Commitments ($ b )
25,000
20,000
15,000
10,000
5,000
Owner occupier ($ b )
Investor ($ b )
Source : ABS , Ray White
0.000
Apr-03 Sep-03 Feb-04 Jul-04 Dec-04 May-05 Oct-05 Mar-06 Aug-06 Jan-07 Jun-07 Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 Dec-09 May-10 Oct-10 Mar-11 Aug-11 Jan-12 Jun-12 Nov-12 Apr-13 Sep-13 Feb-14 Jul-14 Dec-14 May-15 Oct-15 Mar-16 Aug-16 Jan-17 Jun-17 Nov-17 Apr-18 Sep-18 Feb-19 Jul-19 Dec-19 May-20 Oct-20 Mar-21
10