A record one in three new mortgages were sold to property investors, figures reveal.
The AFG Mortgage Index for March shows there is "rapidly increasing confidence in property", says AFG sales and operations general manager Mark Hewitt.
While good news for investors, the figures are likely to add weight to speculation that the Reserve Bank of Australia will raise interest rates next month.
In NSW, 34.4 per cent of new mortgages were sold to investors, a level not reached since May 2005.
"While one should be cautious about reading too much into a single month's data, it would seem that we're at last seeing the long-awaited return of confidence to the NSW property sector," Mr Hewitt said.
"Even Victoria is coming out of the gloom.
"If this trend continues over the next few months, we could be in the golden scenario where property markets, coast to coast, are powering forward."
In Western Australia, 46 per cent of all new mortgages were for investment purposes in March, while in Queensland the figure was 31.2 per cent.
Victoria, at 25.5 per cent, was well below the national average (of 32.9 per cent) but significantly up on its March 2006 rate of just 18.9 per cent.
In South Australia, 27.4 per cent of new mortgages were sold to investors.
The AFG Mortgage Index revealed that the average new mortgage, nation-wide, now stands at $308,038 - up slightly on the previous high of $307,665 in November 2006.
The average mortgage in NSW is $370,161, representing 66.9 per cent of the property's value.
The second-most expensive mortgages are in WA, with an average of $345,440, representing 56.8 per cent of the property's value.
While AFG's index is not definitive, it is usually strongly indicative of more comprehensive figures released later each month by other institutions.
© 2007 AAP Brought to you by Mr Mortgage
