Investor loans at 49.7% of July activity: ABS

Investor loans at 49.7% of July activity: ABS
Investor loans at 49.7% of July activity: ABS

Investor loans accounted for 49.7% of loans in July – its highest share on record.

First home buyers were inactive, with just 13.2% of the total number of loans written to owner occupiers.

Australian Property Monitors senior economist Dr Andrew Wilson said the first home buyer trend was set to continue for years.

"It only gets harder as prices rise," he told Ross Greenwood on 2GB's Money News when asked about the fate of first home owners.

"Just wait, it is a longer journey," Wilson advised first timers.

The highlight in the housing finance data was the spike in the value of lending to investors in July, said CBA economist Gareth Aird.

"Credit to investors is up almost 30% through the year," said Aird.

"Low interest rates and the expectation of future capital gains mean that investors in Australia are currently the major driver of the property market.  

"One consequence is that rental growth is likely to be weak as the proportion of dwellings available for lease is lifts."

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?