I used to think investors were responsible for a significant part of the property price bubble....and am still suspicious. It is true that they were buying property in larger numbers than historically over the last 10 years.
However, ABS stats show the proportion of owner occupied dwellings has not changed drastically in the last 17 odd years.
1991 68.0%
1996 69%
2001 69.5%
2006 69.8%
source: Australian Year Book 2008 page 313
And in that case, one can only infer there is not a higher % of investment property around today cf 15 years ago.
Are there any statistics on who is actually doing the buying and selling? Say over the last 10 years what % of sales are to owner/occupier and how many to investors?