Rising prices beget more buyers?
Pete WargentDecember 17, 2020
It certainly seems that way.
New South Wales investor loans burned 49 percent higher than a year earlier in January as investors chase Sydney property prices higher.
In Victoria, investor loans were up by 35 percent, with Melbourne dwelling prices also rising.
On the flip side, the value of investor loans in Western Australia was down by 16 percent year-on-year.
In Darwin and the Northern Territory, meanwhile, the value of investor loans has dropped to the lowest level in a decade.
Such can be the reflexive nature of markets.
Total lending pulls back
Overall, January wasn't a particularly strong month for total lending according to the Australian Bureau of Statistics (ABS), with a decline in commercial lending in the month.
After a recent spike in November - a near record month - total lending pulled back quite sharply at the beginning of 2017.
In fact, the result for total lending at $67.6 billion was a 5-month low.
In fact, the result for total lending at $67.6 billion was a 5-month low.
Meanwhile, investors pile into Sydney and Melbourne, fearful of changes being made to legislation.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.
His latest book is Four Green Houses and a Red Hotel.
Pete Wargent
Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.