In 2014, we stated that property investors went on a buying frenzy, and following this the price disparity of rental yield to purchase price went inverse. In other words, the investment yield went from approximately 4.5% pa gross to 3.5% pa gross.
In the winter of 2016, rental figures seemed to be at 2-3 year low, and an equally low confidence. We have had a very good strengthening since summer, and strong growth continues in 2017. Yields for investors have been creeping back to 3.8-4.1% pa.
Should sales prices see an adjustment or correction of any sort, I would envisage continued support for investment properties.