It is not just the uncertainty in the political climate that keeps business players from making moves. The drop in investment housing loans this year could also be taken as a sign of property investors saving up for the spring selling season.

For the first time in four months, investment housing loans dropped by a seasonally adjusted 3.6 percent to $7.3 billion in June 2010. The figure is the lowest value reached since February this year, but it compared favourably to June 2009's $6.5 billion.

Mortgage Choice senior corporate affairs manager Kristy Sheppard said, “According to RP Data, seasonally, Australia typically sees higher than average property activity from September through to November. This year should be no exception.”

Sheppard highlighted that there are already more properties on the market than usual during the selling season. Property prices remain flat in many areas and may even be low in some, she said and then pointed at unpredictable rental prices, strong population growth, consumer sentiment, and the share market as factors most investors are likely to consider this season.

Sheppard advises prospective buyers that “fewer new properties” would raise rental prices. The June 2010 Australian Property Monitors’ Rental Market Report shows rental prices for the second quarter rose by 0.7 percent nationwide.