Investor lending continues to outpace owner-occupier growth
The total value of new housing loans in Australia increased by 1.3% in June to $29.2 billion, according to data released by the Australian Bureau of Statistics (ABS).
New owner occupier loans rose by 0.5% to $18.2 billion, while new investor loans climbed by 2.7% to $11 billion.
“Investor lending growth continued to outpace the growth of owner-occupiers in June,” said Mish Tan (pictured above), ABS head of finance statistics. “The total value of new investor loans was 30.2% higher compared to a year ago, while for owner-occupiers it was 13.2%.
The latest ABS lending indicators also showed growth in the value of new investor loans was observed across all states and territories over the past year, with New South Wales (up 27.3% or $901 million), Queensland (up 34.5% or $587 million), and Western Australia (up 56.7% or $428 million) leading the increases.
Victoria saw a more modest rise of 9.4% or $199 million, while South Australia experienced a 38.3% increase, amounting to $175 million.
“Over the past 12 months, New South Wales continued to have the highest average loan sizes for both owner-occupiers and investors. In June, it rose to $780,000 for owner-occupiers and $818,000 for investors,” Tan said.
Meanwhile, the number of new owner-occupier first home buyer loans also saw growth, increasing by 0.7% in June and 3.4% compared to the same period last year. This growth was primarily driven by a 6.5% rise in Victoria, which has maintained the highest number of first home buyer loans of all states and territories since June 2017.
The value of new loan commitments for total fixed term personal finance also rose by 1.1% to $2.6 billion and was 11.7% higher compared to a year ago. Lending for the purchase of road vehicles rose 0.5% in the month.
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