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Lending to investors has maintained its strong growth throughout the month, the latest ABS figures have shown.
The monthly Lending Indicators data for June 2024 released by the Australian Bureau of Statistics (ABS) has shown the value of new investor loans has increased by 2.7 per cent to $11 billion during the month.
By contrast, the value of new owner-occupier loans grew by 0.5 per cent to $18.2 billion, while the total value of new housing loans for the month rose by 1.3 per cent to $29.2 billion, following a fall of 1.7 per cent in May.
The total value of loan commitments was 19.1 per cent higher when compared to the same period last year, according to the ABS.
Mish Tan, ABS head of finance statistics, said: “Investor lending growth continued to outpace the growth of owner-occupiers in June.”
“The total value of new investor loans was 30.2 per cent higher compared to a year ago, while for owner-occupiers it was 13.2 per cent.”
According to the ABS, the value of new investor loans grew across all states and territories over the past year. The largest percentage increases were recorded in Western Australia (up by 56.7 per cent or $428 million), followed by Queensland (34.5 per cent of $587 million) and NSW (27.3 per cent or $901 million).
However, growth was relatively subdued in Victoria and South Australia, which recorded investor loan growth of 9.4 per cent or $199 million and 38.3 per cent or $175 million, respectively.
“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 rose by 0.7 per cent in June, sitting 3.7 per cent higher than a year ago, driven by growth in Victoria of 6.5 per cent. The ABS noted that since June 2017, Victoria has had the highest number of first home buyer loans out of all states and territories.
Reacting to the figures, HIA economist Maurice Tapang said: “Various segments of the housing market are increasingly active, with lending to first home buyers, owner-occupiers, and investors increasing in the first half of 2024.”
“Market confidence appears to be stabilising following nine months without a change in interest rates.
“This increase in lending is partially driven by a return of first home buyers to the market.
“The number of loans issued to first home buyers in the June quarter 2024 was 5.8 per cent higher compared to the March quarter. This suggests that building activity is at, or near, the trough in this cycle.”
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