Lending to investors continues to rise

Media Release
Cite
Print
Released
6/06/2024
Source
Lending indicators, April 2024

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.

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

Personal finance

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.

More information is available in Lending Indicators, Australia.

Media notes

  • All figures are seasonally adjusted unless noted otherwise.
  • Lending Indicators reverted to concurrent seasonal adjustment in the October 2022 release. This method of seasonal adjustment will result in revisions to historical data each month. For more information, see the methodology page.
  • When reporting ABS data, you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
  • For media requests and interviews, please contact the ABS Media Team via media@abs.gov.au (8:30am-5pm AEST Mon-Fri).
  • Watch our data crash course, designed especially for journalists to learn how to find, download and interpret our data.
  • Subscribe to our media release notification service to get notified of ABS media releases or publications upon their release.