Commentators have been hailing the property market slowdown as an opportunity for buyers to get the upper hand, but market conditions are favouring one type of buyer in particular.
CoreLogic figures released last week showed most groups have remained stable in their market share.
Cash multiple property owners' were the major winners with their market share rising from as low as 9 percent in October last year to 14 percent across April/May this year.
First home buyers' share and mortgaged multiple property owners are both at 23 percent, while movers' market share had decreased slightly to 27 percent in May from April's 29 percent.
CoreLogic chief property economist Kelvin Davidson told AM Early on Monday the cooling property market is favouring cash investors.
"What we are really seeing is multiple property owners are coming back in and this is cash multiple property owners, so I think the easiest way to think about it is investors," Davidson told AM Early host Bernadine Oliver-Kerby.
"It's not just investors, it can be people who perhaps were looking to sell a house and have not quite done that yet and have purchased another one."
With the tighter lending rules and the increased interest rates, Davidson said in the current market, "cash is king".
"These numbers we look at are market share, so it's the percentage of transactions. Now there is a caveat here, the number of deals across the market is down, it's just cash investors have fallen less, so that means their percentage market share increases," Davidson said.
"We know in this environment that cash is king basically. Mortgages are less readily available, they cost more, so it stands to reason for people with higher equity base or more cash basically will be enjoying conditions, possible sniffing out some bargains."
The news isn't good for first home buyers with Davidson saying it's "pretty weak conditions" for them.
"First home buyers are down in terms of those number of deals and also market share, so it's pretty weak conditions for first home-buyers," he said.
"They haven't deserted the market altogether by any means, there are still first home buyers out there, but it's tougher within that restricted credit environment."
Davidson pointed out that some first-home buyers might've actively pulled back, thinking they'll get a cheaper property deal later but warned there is a risk in doing that.
"The risk is interest rates have gone up further in the meantime, so it could be the sums don't quite work out in your favour," he said.
"First home buyers are down and currently at about 22-23 percent market share, go back six months that was more like 26-27 percent. It is tough out there for first home buyers but tough for everybody pretty much, unless you have a bit more equity."
Watch the full interview with Kelvin Davidson above.
