Investor lending continues to outpace owner-occupiers

[Pelican Press 0]

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Investor lending continues to outpace owner-occupiers

Lending by property investors continues to run faster than the value of home loans taken out by owner-occupiers, reflecting a still-tight rental market.

That’s as the total value of lending to property investors, owner-occupiers and first-home buyers rose 1.3 per cent in June following a 1.7 per cent slide in May.

New housing loans hit $29.2 billion, data compiled by the *********** Bureau of Statistics showed, to be 19.1 per cent higher compared with a year earlier.

ABS head of finance statistics Mish Tan said investor lending growth continued to outpace loans to owner-occupiers.

In June, owner-occupier loans rose 0.5 per cent to $18.2 billion, while investor loans gained another 2.7 per cent, to $11 billion.

“The total value of new investor loans was 30.2 per cent higher compared to a year ago, while for owner-occupiers it was 13.2 per cent,” Ms Tan said.

Oxford Economics Australia senior economist Maree Kilroy said the tight rental market and higher ****** rental yields were helping to stoke investor demand.

“The spread between owner-occupier and investor mortgage rates has also progressively tightened with banks competing for market share,” she said.

New investment loan growth was driven by NSW, up 27.3 per cent or $901 million, Queensland, up 34.5 per cent or $587 million, and Western Australia, up 56.7 per cent or $428 million.

Victoria logged a more muted 9.4 per cent increase, which Ms Kilroy said reflected policy tweaks towards investors.

Mid-sized capitals Perth, Adelaide and Brisbane have seen the fastest home price growth, with Thursday’s price update from CoreLogic revealing a continuation of the dual-speed trend of these cities growing much faster than other big urban areas.

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