Investor Lending nears 2022 Peak as Housing Loan Commitments Surge

In August, the latest investor lending indicators data from the Australian Bureau of Statistics shows that new loan commitments have increased by 1.4 % to $11.7 billion. Such a spike has not been observed since January 2022, when the peak was quite close to $11.82 billion.?

Difference from Last Year

The investor lending rates have been impacted in the following manner:

• 34.2 % hike has been observed in comparison to the last year (during the same time)
• The new loan commitments for owner-occupier housing have increased by 16.8 % compared to last year, reaching $18.7 billion.
• Overall, the value of new loan commitments for all properties in Australia has increased to $30.4 billion (3.5 % in the month prior and approximately 1% from the previous year as of August 2024)
• Also, the total value of loan commitments is now 23% higher than last year.

State-by-State variations?

Dr Mish Tan, Head of the Finance Department at the Australian Bureau of Statistics, articulates that stark variations are observed among Australian states as housing loan rates rise. Queensland is leading the chain of investment lending. The rates here have climbed strongly in the past 12 months by over 40%, more than $2.0 billion compared to any other state.

For Owner-Occupied Housing

For the month, the value of new loan commitments for owner-occupied residential places increased and declined, as mentioned below:

Hike Observed

• Queensland witnessed the new housing loan commitments surge by 2.6 %.

• The second-in-line for the month is the Northern Territory, which recorded an increase of 7.8% in investor lending.
• Following this, South Australia has observed a 2.1% rise in investor lending.
• ?Next came Tasmania, witnessing a lending surge of 1.9%.
• ?The? Australian Capital Territory observed a 1.3 % increase in lending
• Western Australia was at the lowest spot with 0.5 % in lending investments.

• Fall in Specific Regions

Concerning Investor Housing Loans

Hike Observed

• In Queensland, values increased by 7.9 %
• 5.1 % hike observed in South Australia
• An 0.4% rise was observed in the Australian Capital Territory

Declines recorded

• An 8.3% decline in values was recorded across Western Australia.
• Values related to investor housing loans in Victoria dipped by 2.7%.
• A 9.1% slip in the Tasmania region.
• In the Northern Territory, a visible decrease of 8.1% has been recorded
• New South Wales was the only territory with no major changes since July.

The Concluding Part

While the nationwide trend showcases a steep rise in the loan commitments for owner-occupied and investor housing loans, the data differ when comparing different states. The strong uptick in investor lending reflects renewed confidence in the housing market. Thus, we envision growth in Australia's property investment market in the coming years. Call now at 0456 456 267 or 1300 GET LOAN for tailored advice and support on expanding your property investment portfolio. For more detailed information read our related Articles or CONTACT US .