Investor loan commitments see 18% annual rise
The Real Estate Institute of Australia (REIA) has expressed its satisfaction with the latest lending statistics released by the Australian Bureau of Statistics (ABS), which indicate a gradual return of investors to the country's housing market.
According to the ABS figures for November 2023, the value of new loan commitments for total housing increased by 1% to $27.6 billion in seasonally adjusted terms. This follows a rise of 7.1% in October and represents a 13.1% increase compared to the previous year.
In terms of specific categories, owner-occupier housing saw a 0.5% rise to $17.9 billion, marking a 10.6% increase compared to a year ago. Meanwhile, investor housing experienced a 1.9% increase to $9.7 billion, reflecting an 18% rise compared to the previous year.
REIA President Leanne Pilkington commented on the figures, stating that they are indicative of strong housing growth over the past year. She also expressed relief at the return of investments in the sector.
“The value of new loan commitments to investors has started to increase, in particular ACT saw phenomenal growth in November with the value rising by 18.4% while loans in Tasmania fell 11.8%,” she said.
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Pilkington noted that owner-occupier loans recorded moderate growth in November, with some states, such as Tasmania and New South Wales, showing signs of stabilisation. The ABS data revealed that Queensland experienced a 3.3% rise, Victoria saw a 2% increase, South Australia recorded a 6.9% growth, the Australian Capital Territory witnessed a 9.4% rise, and the Northern Territory saw a 6.0% increase.
On the other hand, New South Wales fell by 1.1%, Western Australia experienced a 2.9% decline, and Tasmania saw a significant decrease of 15.2%.
These lending statistics follow the latest ABS data, which showed that the Consumer Price Index rose by 4.3% in the 12 months leading up to November 2023, down from 4.9% in October.
Pilkington added that the RBA’s 13 interest rate rises had finally curtailed inflation, indicating that the economy is now heading in the right direction.
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