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Yesterday’s lift in interest rates to a 12-year high is likely to dampen any potential increase in property investment activity.
Rising rents and a volatile share market had begun to attract investors back to the property market late last year. However any further pick up in property investment is likely to be delayed after the latest rate rise, Macquarie Bank property market analyst Rod Cornish told The Australian Financial Review today.
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“We have seen a few more investors coming back into the market, but we never expected a massively swift return, so this rate rise will push this out a bit further,” Mr Cornish said.
“The fact that we’ve already seen a rise and another is expected means there will be less of a shift towards property. Investors will be waiting for some stabilisation in the rates, so it’s likely we won’t see too much of a swing for investors in this calendar year.”
Published: 05-03-08
