Investors continued to dominate home lending in April, according to data released this week by the Australian Bureau of Statistics (ABS).
The latest figures show that the value of new loans to housing investors rose 5.6% in April to $10.9 billion, which was 36.1% higher compared with a year ago.
The value of new loans to owner-occupiers (excluding first home buyers) rose 4.7% to $13.1 billion, up 18.8% since April 2023.
First home buyer loans also rose in April, by 3.4% to $5.4 billion, a rise of 18.6% compared to a year ago.
Around the country, the total value of owner-occupier lending rose 9.9% in NSW, 3.8% in Victoria, 2.8% in Queensland, 3.3% in South Australia, 7% in WA, 2.7% in the Northern Territory and 8.5% in the ACT, but fell 16.5% in Tasmania.
ABS head of finance statistics Dr Mish Tan noted that 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”, Tan suggested.
The average size of an investor loan for an existing dwelling grew 9.5% 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%, 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% and 46.4% respectively since April 2023.
New owner-occupier first home buyers also continue to grow, with the number of loans to this sector loans up by 3.0% in the month, to be 10.8% higher compared to a year ago.
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