Property investors expected to dominate Australian market

Property investors are set to replace first-time buyers in the Australian property market in 2010, it has been claimed.

Mortgage experts expect investment to continue on its upward trend but anticipate a change in who will buy, with first-time buyers likely to take a back seat as more well-off individuals look to capitalise on the market.

Mark Hewitt, general manager of sales and operations at Australian Finance Group, said in an interview with the Australian that the first-time buyer market reached its peak during 2009 when many bought their homes with the help of government grants.

However, Mr Hewitt thinks many investors will now view the Australian property market as a "safe bet" in comparison with other more unpredictable ventures.

"Investors are returning to property investment. They have been coming back since the middle of last year to take advantage of a tight rental market," he told the news provider.

The average home price in Australia rose 11.3 per cent in the first 11 months of 2009 according to the latest figures released in the RP Date-Rismark Nation Home Value Index.