Sales to drop keeping values rising

The latest Property Market & Economic Report reveals mortgaged investors’ buying surged from 27% to a record-high 29% share of purchases, reinforcing the heated market, which led to the Government’s recent policies in an effort to dampen the housing market.

CoreLogic chief property economist Kelvin Davidson says the figures in the report are a clear “line in the sand” following the extension of the bright-line test and scrapping of mortgage interest tax deductibility.

“While the figures in the report largely pre-date the housing policy changes, they are a valuable line in the sand as to where the property market was when the Government stepped in.

“Now the game has changed especially for investors, so we expect to start seeing through our various market measures how these changes flow through to our buyer classification data and ultimately, property values.”