by Sanjeev Sah | Mar 05, 2024 | Market Updates

Recent PropTrack data shows a notable uptick in investment property sales in Melbourne and Sydney during the December quarter. 

In both cities, investor sales made up 35.2% of total home sales – up from 28.3% and 26.9% respectively in 2022  

Despite this increase, PropTrack senior economist Paul Ryan said that, on net, more investors had entered the market than left, attracted by the ongoing shortage of rental properties and the prospect of increasing rental yields.  

“These rental shortages aren’t going to be alleviated in the short term, so I think investors can see that although interest rates are high now, interest rates might reduce in the future, and rents are likely to keep growing strongly,” he said.  

Nationally, CoreLogic data shows gross rental yields were 3.7% in January – up from a record low of 3.16% in early 2022 (see image).