“Shifting to new builds”: Why property investors are changing strategy

Property investors shift focus: borrowing for new builds rises 20% while existing property loans drop 14%, says Australia Institute

Australian property investors are increasingly turning to newly built homes, with borrowing for new builds rising 20% while investment loans for existing properties fell 14% over the past year, according to ABS figures cited by Australia Institute economist Matt Grudnoff.

Grudnoff suggests proposed budget changes could be influencing investor behaviour, with those looking to remain in the property market shifting towards new construction to access tax concessions.

The figures point to a potential change in investment strategies, as tax settings increasingly factor into decisions about where investors put their money.

The shift could also have implications for housing supply, with greater investment in new builds potentially supporting construction, while raising questions about how policy changes will affect the broader property market.