Increase driven by larger loan sizes and investor activity
The value of new housing loans in Australia surged by 17.9% annually, reaching $27.6 billion after a 3.1% growth just in the month of March, the Australian Bureau of Statistics (ABS) has reported.
“The value of new loan commitments is a product of the size of loans being approved and the volume of loans,” said Mish Tan (pictured), ABS head of finance statistics. “The rise in the value of new home loans over the past year reflected increases in the average loan size, in line with rising house prices over the same period.
“Meanwhile, in original terms, the number of loans reaching the final commitment stage is broadly similar to a year ago.”
“The value of new loan commitments is a product of the size of loans being approved and the volume of loans," Mish Tan, ABS head of finance statistics
— Australian Bureau of Statistics (@ABSStats) May 3, 2024
Visit https://t.co/9IbOfdfhuY pic.twitter.com/p7cBCgeGbm
ABS’ latest lending indicators data also showed that in terms of borrower types, investor loans experienced a significant jump of 3.8% in March alone, totalling $10.2 billion and marking a 31.1% rise since March of the previous year.
Loans for owner-occupiers, excluding first home buyers, climbed 2.1% to $12.3 billion, reflecting an 8.8% increase over the year.
Meanwhile, loans for first home buyers grew by 4.4% to $5.2 billion, with an annual increase of 17.9%.
“Since March 2023, there has been relatively strong growth in investor loans, with increases in both the number, by around 11%, and the average loan size, up around 8%, in original terms,” Tan said.
“This aligns with historically low vacancy rates over the same period, and CPI rental prices rising 7.8% annually to March quarter 2024.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
