Lending To Investors Continues To Rise: Australia

The value of new loans to investors for housing rose 5.6 per cent in April to $10.9 billion, which was 36.1 per cent higher compared to a year ago, according to data released today by the Australian Bureau of Statistics (ABS).

The value of new loans to owner-occupiers (excluding first home buyers) rose 4.7 per cent to $13.1 billion, up 18.8 per cent since April 2023. First home buyer loans rose 3.4 per cent to $5.4 billion, a rise of 18.6 per cent compared to a year ago.

Monthly value of new loan commitments for housing (excluding refinancing) – seasonally adjusted

DateOwner-occupiers (excluding first home buyers) ($b)Investors ($b)Owner-occupier first home buyers ($b)
Apr-148.8378.30762.4995
May-148.64738.25352.5737
Jun-148.76718.24392.6307
Jul-148.81198.54822.4812
Aug-148.51288.61472.4808
Sep-148.63228.94692.4836
Oct-148.90019.15332.5026
Nov-148.59529.08792.4233
Dec-148.95539.13232.4017
Jan-159.18039.1492.3561
Feb-158.78168.89252.5131
Mar-159.15639.56032.5615
Apr-159.288210.05062.5488
May-158.71539.12522.4084
Jun-159.49619.18912.4885
Jul-159.88368.81982.4286
Aug-1510.84958.42952.4136
Sep-1511.12257.46042.4508
Oct-1510.79726.8512.339
Nov-1510.66436.6582.3552
Dec-1510.456.73142.4617
Jan-1610.09356.56542.4041
Feb-1610.29366.68342.4206
Mar-1610.09656.70262.3419
Apr-1610.29876.88442.4864
May-1610.31237.20542.4347
Jun-1610.29767.49912.4132
Jul-1610.11117.58532.3433
Aug-1610.03377.57212.2695
Sep-1610.15058.34352.3429
Oct-1610.20348.53442.3912
Nov-1610.36028.93082.3568
Dec-1610.71548.92852.3874
Jan-1710.7939.00682.3509
Feb-1710.88618.65042.3409
Mar-1711.27488.88722.412
Apr-1711.15378.62542.4412
May-1711.54648.40052.4794
Jun-1711.33968.10182.6554
Jul-1711.2467.78323.0293
Aug-1711.32847.92423.1969
Sep-1711.27327.87733.1028
Oct-1710.93247.5453.1379
Nov-1710.93627.46843.2279
Dec-1710.77747.16913.2367
Jan-1810.82166.92043.2091
Feb-1810.94287.05423.3281
Mar-1810.58416.55123.2204
Apr-1810.56616.37413.1901
May-1810.98696.51713.2861
Jun-1810.68846.24763.371
Jul-1810.63326.26543.356
Aug-1810.09565.91983.1897
Sep-189.83395.98173.1387
Oct-189.915.67323.1763
Nov-189.41195.42613.1499
Dec-188.93425.18752.817
Jan-198.74614.88092.8416
Feb-199.21444.99463.0545
Mar-198.55724.73732.9701
Apr-198.78714.80713.0468
May-198.46684.61543.0788
Jun-198.66634.68333.2217
Jul-198.74744.92453.4783
Aug-199.01485.09273.6613
Sep-199.32975.2623.6355
Oct-199.65285.13913.6707
Nov-1910.01975.36023.8863
Dec-1910.2625.66094.0505
Jan-2010.52855.45674.2752
Feb-209.82065.14024.0444
Mar-209.84894.95814.1028
Apr-209.34924.98634.0873
May-208.31643.88183.5947
Jun-209.04014.40293.9281
Jul-209.95074.60384.4354
Aug-2011.14264.8375.0775
Sep-2012.13885.75075.4455
Oct-2012.07245.11365.502
Nov-2012.49285.57595.6358
Dec-2013.33746.42326.4624
Jan-2115.15766.54287.4495
Feb-2114.83916.85796.7759
Mar-2115.01087.65636.6045
Apr-2116.25987.95586.6394
May-2115.82188.3466.4376
Jun-2116.23948.89856.2986
Jul-2116.77969.15066.1441
Aug-2115.97669.48975.7081
Sep-2115.744110.68895.4553
Oct-2114.79589.74175.2353
Nov-2116.212210.8665.3858
Dec-2116.476711.33745.612
Jan-2217.485111.595.8324
Feb-2216.328211.34955.0769
Mar-2215.841711.51495.2417
Apr-2215.10510.75625.0602
May-2215.468710.4935.1574
Jun-2215.210910.19634.7579
Jul-2214.72549.19184.5633
Aug-2213.80589.02944.7072
Sep-2212.90318.91584.41
Oct-2212.73268.44024.5159
Nov-2211.96748.43184.1823
Dec-2211.75278.17164.0983
Jan-2311.35477.80924.0602
Feb-2311.51057.95344.1096
Mar-2311.35557.80734.4063
Apr-2311.01847.97924.5532
May-2311.41228.22234.7256
Jun-2311.32718.4554.7832
Jul-2311.14348.62934.4671
Aug-2311.66258.89184.5013
Sep-2311.86549.32264.7517
Oct-2312.24989.3565.0316
Nov-2312.49149.85725.0345
Dec-2311.92749.65214.9434
Jan-2411.95859.5854.6801
Feb-2412.15239.84894.9778
Mar-2412.507510.28635.2231
Apr-2413.089410.86115.4007

Dr Mish Tan, ABS head of finance statistics, said: “Lending to investors continued to rise strongly relative to owner-occupiers, driven by increasing loan sizes. This likely reflects expectations of higher rental yields and the greater borrowing capacity of investors.”

In original terms, the average size of an investor loan for the purchase of an existing dwelling grew 9.5 per cent since April 2023, from $592,000 to $648,000. In comparison, the average loan size for an owner‑occupier first home buyer grew 6.8 per cent, from $498,000 to $532,000 over the same period.

The growth in the value of investor loans was strongest in New South Wales and Queensland, increasing 43.9 per cent and 46.4 per cent respectively since April 2023.

Looking at the number of loans, new owner-occupier first home buyer loans rose 3.0 per cent in the month to be 10.8 per cent higher compared to a year ago.

Housing finance loan commitments by property purpose and state, seasonally adjusted – Apr 2024

Aus *NSWVicQldSAWATasNTACT
Owner-occupiers
Value ($b) :18.56.15.13.71.02.10.20.090.4
Value change ($m):76054618710034135-44230
Value % change ** :4.39.93.82.83.37.0-16.5 †2.78.5
Owner-occupier first home buyers
Number change:2992202711724731436-11
Number % change ** :3.09.20.86.14.25.48.765.5 †-4.5
Investors
Value change ($m):575363147146498711211
Value % change ** :5.68.96.96.88.98.212.5 †4.55.7

* Total Australia levels do not necessarily equal the sum of states, due to independent seasonal adjustment

** All movements are on a month-to-month basis

† A smaller and more volatile series

The value of new loan commitments for total fixed term personal finance rose 0.8 per cent to $2.6 billion. Lending for the purchase of road vehicles fell 1.2 per cent in the month.

/ABS Public Release. View in full here.