ROOT
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price.
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price.
New analysis from BMT Tax Depreciation has indicated that the average value of investment properties in Australia is significantly lower than the average value of properties overall.
Based on tax depreciation schedules prepared by the firm during the December quarter, BMT found that the average purchase price of investment properties was $751,800.
In comparison, the Australian Bureau of Statistics (ABS) reported last month that the mean national property price was $920,100 during the same period.
“We know from both our own data, and data from the ATO, that property investors are mostly ‘Mum and Dad’ type investors with one investment property,” said BMT CEO Bradley Beer.
“They are typical Aussies using investment properties to boost their retirement nest eggs.”
Mr Beer said that the firm’s findings challenged the view that wealthy property investors were responsible for driving up property prices and that tax incentives associated with property investment had encouraged investors to enter the market to compete with owner occupiers.
“The average property investor is simply making an investment choice based on cash flow and the potential for long-term capital gain. They are not competing at either the top or the bottom of the market,” he argued.
Additionally, Mr Beer noted that even though property investors are often viewed as being wealthy high-income earners, 74 per cent of those who own investment properties earn less than $100,000 per year, according to data from the ATO.
“Private Mum and Dad investors fund the majority of affordable rental housing in Australia,” he said.
“With a looming rental crisis in many regions and a shortage of affordable housing and rentals, government should concentrate on increasing supply of housing and be careful of making changes to negative gearing and other incentives available to property investors.”
The ABS recently reported that the value of investor loan commitments fell 1.8 per cent to $10.8 billion in February, the first fall since October 2020.
Lower investor loan commitments were recorded in the ACT (-11.9 per cent), NSW (-5.5 per cent), South Australia (-4.8 per cent) and Queensland (-2.6) during the month.
Meanwhile, the value of investor loan commitments remained flat in Victoria and rose in Western Australia (6.8 per cent) and Tasmania (2.8 per cent).
RELATED ARTICLES
Earn
January’s strategic edge: Turn a quiet month into outsized returns by 2026
January isn’t just a fresh calendar page; it’s an underpriced window to make high‑conviction decisions before the competitive noise returns. With budgets locked, risk appetites clear and board agendas ...Read more
Earn
Case study: How Australia’s broker ecosystem turned a volatile 2025 into a strategic advantage
A year defined by rate cuts, lender policy resets and government schemes reshaped Australia’s mortgage and finance market. This case study dissects how leading brokerages converted macro whiplash into ...Read more
Earn
Peak season powers a nationwide workforce rebound
Australia’s labour market is experiencing a significant resurgence as peak season spending revitalises employment across the nation. The latest November Jobs Report from Employment Hero, a global ...Read more
Earn
From lone wolves to performance systems: how to convert individual drive into repeatable team wins
High-performing individuals are valuable; systems that meaningful scale their behaviours are priceless. Agency leaders say networks can transform ambition into organisational advantage—if the ...Read more
Earn
State Street economist comments on recent Labour Force data, urging RBA caution
In light of the recently released Labour Force data, Krishna Bhimavarapu, an economist at State Street Global Advisors, has provided insights that may influence the Reserve Bank of Australia's (RBA) ...Read more
Earn
Job market booms, but falling hours keep productivity under pressure
Australia's job market is experiencing a significant resurgence, with employment figures showing a robust increase, according to the latest report from Employment Hero. The October Jobs Report, ...Read more
Earn
Rate cut back in play: how a softer labour market could reshape Australian balance sheets by Christmas
With unemployment at a four‑year high and policy makers signalling a controlled easing in labour conditions, markets are again pricing the possibility of an RBA cut before year‑end. Beyond the ...Read more
Earn
New Business Boom: Australia’s Top Ten Suburbs Lead Entrepreneurial Growth
Australia's entrepreneurial landscape is witnessing a remarkable transformation, with the latest data from the Lawpath New Business Index highlighting a significant surge in new business registrations ...Read more
Earn
January’s strategic edge: Turn a quiet month into outsized returns by 2026
January isn’t just a fresh calendar page; it’s an underpriced window to make high‑conviction decisions before the competitive noise returns. With budgets locked, risk appetites clear and board agendas ...Read more
Earn
Case study: How Australia’s broker ecosystem turned a volatile 2025 into a strategic advantage
A year defined by rate cuts, lender policy resets and government schemes reshaped Australia’s mortgage and finance market. This case study dissects how leading brokerages converted macro whiplash into ...Read more
Earn
Peak season powers a nationwide workforce rebound
Australia’s labour market is experiencing a significant resurgence as peak season spending revitalises employment across the nation. The latest November Jobs Report from Employment Hero, a global ...Read more
Earn
From lone wolves to performance systems: how to convert individual drive into repeatable team wins
High-performing individuals are valuable; systems that meaningful scale their behaviours are priceless. Agency leaders say networks can transform ambition into organisational advantage—if the ...Read more
Earn
State Street economist comments on recent Labour Force data, urging RBA caution
In light of the recently released Labour Force data, Krishna Bhimavarapu, an economist at State Street Global Advisors, has provided insights that may influence the Reserve Bank of Australia's (RBA) ...Read more
Earn
Job market booms, but falling hours keep productivity under pressure
Australia's job market is experiencing a significant resurgence, with employment figures showing a robust increase, according to the latest report from Employment Hero. The October Jobs Report, ...Read more
Earn
Rate cut back in play: how a softer labour market could reshape Australian balance sheets by Christmas
With unemployment at a four‑year high and policy makers signalling a controlled easing in labour conditions, markets are again pricing the possibility of an RBA cut before year‑end. Beyond the ...Read more
Earn
New Business Boom: Australia’s Top Ten Suburbs Lead Entrepreneurial Growth
Australia's entrepreneurial landscape is witnessing a remarkable transformation, with the latest data from the Lawpath New Business Index highlighting a significant surge in new business registrations ...Read more
