June investment loan figures pull Sydney into line: AFG
Investment loans nationally declined in June from their earlier peak, with figures for June showing investment loans down to 36.9% when compared to the April highs of 43.1% of all mortgages processed.
According to the AFG Mortgage Index a similar trend was felt across all states, with investment loans in Queensland down to 34.1% from 36.1%, Western Australia from 31.8% to 31.2%, Victoria from 36.5% to 35.7% and South Australia from 41.8% to 36.8%
New South Wales fell the furthest, down to 41.6% from May's figure of 49.8%. During the past year investment loans in NSW held an average of 49.5% of all loans.
AFG managing director Brett McKeon said if this trend continues, it should help allay concerns about overheating in Sydney in particular, as investment levels come back into line with the sustainable, long term, national average.
“These figures suggest that APRA controls are starting to take effect, but not at the expense of the overall mortgage market,” Mr McKeon said.
