Australians have taken advantage of the favourable lending conditions offered by financial institutions to create a spike in borrowing levels.
The availability of funds has resulted in the property sector heating up, with the both residential and commercial markets showing significant levels of activity. In fact, demand for property continues to surge, with buying conditions not seen in the country since the peak of the Global Financial Crisis in 2009.
A high degree of competition, particularly from overseas lending institutions has been one of the main drivers in the increased willingness of Australian banks to throw open their doors to borrowers.
Additionally, new rules such as allowing Self-Managed Superannuation Funds to invest in property, as well as the existing allowances around negative gearing mean that demand for funds is high from the traditional sources, as well as an ever-increasing range of new ones.
But it’s not just investors taking advantage of the attractive borrowing conditions. Buoyed by the availability of funds and the confidence in the property sector, first-home buyers are continuing to flood into the market in most cities.
It all adds up to a property market that continues to gather pace, and doesn’t seem to be running out of steam any time soon.
