Investor mortgage lending drops sharply as new-build financing rises in Australia
Lending to property investors fell almost 9% in the June quarter, while loans for new-build purchases rose, signalling a shift in the housing market.
New data from the Australian Bureau of Statistics reveal that investor mortgage lending slipped by nearly 9% in the June quarter, with investor loans down 8.6% after a 4.7% decline in the prior period. The total number of new home loans also fell by 5.4% over the same timeframe. While loans for established-property investors dropped 14.8%, financing for investors purchasing new builds rose 4.4% to a historic high, reflecting a budget provision for such lending.
The slowdown follows three Reserve Bank of Australia rate hikes and recent investor-tax reforms that have pressured property prices. Economists say the reduced competition from investors in existing homes could benefit first-time buyers, and the boost to new-build investment may increase rental supply. Industry observers describe the shift as a small but positive move toward a more balanced housing market.
Why it matters
The trend could ease competition for first-home buyers and increase rental supply in Australia.
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