Investor lending nearing 2022 peak

Figures from the latest Lending Indicators data for August released by the Australian Bureau of Statistics have shown that new loan commitments for investor housing rose 1.4 per cent to $11.7 billion (seasonally adjusted).

This was 34.2 per cent compared to the same period last year and sits just shy of the January 2022 peak of $11.82 billion.

Meanwhile, the value of new loan commitments for owner-occupier housing rose 0.7 per cent to $18.7 billion, now sitting 16.8 per cent higher than a year ago.

In total, the value of new loan commitments for all housing rose 1 per cent to $30.4 billion following a rise of 3.5 per cent the month prior. The total value for loan commitments is now 23 per cent higher than the same period last year.

According to the ABS, comparing the values of both owner-occupier and investor housing loans with August 2023 has shown differences between the states.

Dr Mish Tan, ABS head of finance statistics, said: “There were state-by-state variations in the year leading up to August’s modest housing loan rises.

“Lending in Queensland grew strongly in the past 12 months and was the key driver behind the August increase.

“The total value of lending for housing in Queensland rose by just over 40 per cent in the past 12 months. This $2.0 billion rise was more than any other state.”

For the month, Queensland saw the value of new loan commitments for owner-occupier housing rise by 2.6 per cent.

This was the second-strongest percentage increase for the month with the Northern Territory recording an increase of 7.8 per cent, followed by South Australia (2.1 per cent), Tasmania (1.9 per cent), the ACT (1.3 per cent), and Western Australia at 0.5 per cent.

However, values for this category fell in both NSW and Victoria by 1.4 per cent and 1.8 per cent, respectively.

For investor housing, values rose by 7.9 per cent in Queensland, followed by 5.1 per cent in South Australia and 0.4 per cent in the ACT.

Declines were recorded across Western Australia (8.3 per cent), Victoria (2.7 per cent), Tasmania (9.1 per cent and in the NT by 8.1 per cent. NSW was the only state or territory to remain unchanged from July.

[RELATED: Major banks show mixed growth in July]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.