The portion of investor-owned listings across Sydney ballooned to a record 39.8 per cent last month as the financial stress of meeting the large increase in mortgage repayments worsened, data from CoreLogic shows.More investors are selling up as the gap between rental income and mortgage costs widened.“The motivation to sell this year is likely to have come from rapid increases in interest rates, where investors have inherently higher mortgage rates,” said Eliza Owen, CoreLogic head of research.
“We’re starting to see the effects of rising inflation and rising interest rates on investors who largely own one or two investment properties.” Across Darwin, investor-owned listings blew out to 51 per cent, and in Hobart, they rose to 24.8 per cent, their highest levels in nine months. While Adelaide and Canberra recorded a drop in the portion of ex-rental listings at 26.7 per cent and 32.3 per cent respectively, they are still substantially higher than their decade averages of 25.7 per cent and 27.7 per cent.Ms Lomas said it had become nearly impossible to hold an investment property over the long term.
“Investors looking to the future of their often small portfolios see times ahead where they will most certainly be unable to meet their investor mortgage repayments, and many are selling now.”and mortgage costs has widened significantly, despite large increases in rents in the past 12 months.
In Sydney, Stanmore, Forest Lodge and Parklea posted the largest share of investor-owned listings in the city at 53.4 per cent, 52.9 per cent and 51.4 per cent respectively.