Investor property loan growth back to pre-GFC levels: RBA

Investor property loan growth back to pre-GFC levels: RBA

Divergent trends are apparent in the housing market of late, with investors continuing to show momentum, while credit to owner-occupiers has consolidated since the end of last year.

Andrew Hanlan, the Westpac senior economist was commenting after investment property loan growth accelerated sharply last month, at the fastest year-on-year growth since the first quarter of 2008.

The surge in investment loan lending to pre-GFC levels saw loans to investors in June jump 0.9%, according to Reserve Bank of Australia data published Thursday.

Annual investment loan growth has now hit 8.7%.

Loans to households – including owner-occupiers – rose by a more modest 0.6%, taking the annual gain to 6.4%.

“Notably, low and falling interest rates in 2013 triggered a sharp lift in new lending for housing,” Andrew Hanlan noted.

This story originally appeared at PropertyObserver.

You can help us (and help yourself)

Small and medium businesses and startups have never needed credible, independent journalism and information more than now.

That’s our job at SmartCompany: to keep you informed with the news, interviews and analysis you need to manage your way through this unprecedented crisis.

Now, there’s a way you can help us keep doing this: by becoming a SmartCompany supporter.

Even a small contribution will help us to keep doing the journalism that keeps Australia’s entrepreneurs informed.



Notify of
Inline Feedbacks
View all comments