The answer to that question is going to depend on what location you are referring to. Investors must understand that there is no such thing as “The Australian” property market. That market is actually made up of many different submarkets and each are operation within different cycles.

While interest rates have increased, rents are increasing at a faster rate in some cities. So the rate increases are not really affecting investors like owner occupiers in those locations. The number of owner occupier buyers has been reduced but clever investors are still snapping up quality property. But rather than buying the first thing they see, they are being more selective and opting for higher yield investments. Places like Sydney and Melbourne are falling out of favour for investors because yields are so low. You are lucky if you are getting 3% in those locations whereas Brisbane and Perth are offering much more attractive yields of between 4% and 5 %

Given the current circumstances, all indicators point towards Brisbane and Perth prices continuing to increase due to strong demand, low supply and high yield, while Sydney and Melbourne will plateau for a while until yields improve and holding cost come down.