New home loan commitments fell slightly in May

Media Release
Released
8/07/2024

The total value of new housing loans fell 1.7 per cent in May to $28.8 billion, according to data released today by the Australian Bureau of Statistics.

The value of new investor loans fell 1.3 per cent in May to $10.7 billion. Owner-occupier loans (excluding first home buyers) fell 1.6 per cent to $12.9 billion, while first home buyer loans fell 2.9 per cent to $5.2 billion.

Fiona Cotsell, ABS head of finance statistics, said: “Despite the falls seen across all types of buyers in May, the value of new home loan commitments has still risen 18 per cent over the past 12 months. Loans to investors have continued to see stronger growth than owner-occupiers over this period.”

Since May 2023, the value of new loans to investors has trended upwards across most states and territories. The largest rises were in New South Wales (up 24.8 per cent), Queensland (up 48.2 per cent) and Western Australia (up 73.9 per cent).

“In May, the value of new loans to investors in Queensland reached an all-time high of $2.4 billion, exceeding Victoria for the third consecutive month.

“This is mainly due to investors taking out larger loans in the sunshine state compared to this time last year. We saw the average loan size for investors in Queensland increase by 14.3 per cent since May 2023, from $508,000 to $580,000. Comparatively, the average loan size in Victoria fell 3.2 per cent over the same period, from $584,000 to $566,000,” Ms Cotsell said. 

Housing finance loan commitments by property purpose and state, seasonally adjusted – May 2024
 Aus *NSWVicQldSAWATasNTACT
Owner-occupiers 
 Value ($b) :18.15.55.03.71.02.10.30.080.4
 Value change ($m):-366-478-12530-185321-5-5
 Value % change ** :-2.0-7.9-2.40.8-1.72.69.2-6.3-1.4
Owner-occupier first home buyers 
 Number change:-337-209-101-65-12-29-9-20-3
 Number % change ** :-3.3-7.9-3.2-3.2-2.0-2.1-5.1-22.5-1.3
Investors 
 Value change ($m):-137-395789919620-422
 Value % change ** :-1.3-9.03.44.33.15.3-0.4-9.710.9

* 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 fell 0.7 per cent to $2.6 billion, but was 12.7 per cent higher compared to a year ago. Lending for the purchase of road vehicles rose 0.8 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).
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