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Lending breaks records

Lending to homebuyers continues to break records, according to data released this week by the Australian Bureau of Statistics (ABS).

The latest figures show that new loans for housing rose 4.4% to a record high value of $32.8 billion (seasonally adjusted) in December 2021.

The rise was driven by a 5.3% rise in the value of new owner-occupier loans. It was the second consecutive monthly rise in owner-occupier lending and followed falls in June 2021 through to October 2021.

Investors are also keen, with the total value of new investor loans reaching 2.4%, a record high of $10.3 billion.

ABS Acting head of Finance and Wealth Amanda Seneviratne said that investor lending has seen growth over the past 14 months and accounted for around one-third of the value of new housing loan commitments in December 2021.

“The previous investor lending peak in April 2015 accounted for 46% of new housing loan commitments,” Ms Seneviratne said.

The strongest rises in investor loan commitments were Victoria (up 3.4%), New South Wales (1.1%) and the Australian Capital Territory (10.4%). All other states and territories fell.

At a national level, the average loan size for owner-occupier homes (which includes construction and the purchase of new and existing dwellings) rose to a record high of $602,000, an increase from November of $6,000.

Average loan sizes reached new highs in all states and territories except Queensland and Tasmania.

The number of new loans to owner-occupier first home buyers grew for the second consecutive month, up 1.3% to 11,778. The increase was driven by Western Australia, which rose 11.8%, and Queensland, which rose 3.8%. New loan commitments to owner-occupier first home buyers fell 21.5% through the year.

About Adam Nobel

Principal
M. Bus, Grad Dip Adv, B.Int Bus, LREA

adam@hugoalexander.com.au

0417 007 001

Adam is the founder and Principal of Hugo Alexander Property Group. With a previous career in advertising, 20 years experience in property investment, and 14 years in Brisbane real estate, he knows the market inside out to ensure his clients grow their wealth faster.

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