Investor lending in Australia is nearing record highs, with the value of new investor loans reaching $11.7 billion in July 2024, just shy of the $11.8 billion peak in January 2022. This increase represents a 35.4% growth compared to July 2023, outpacing the rise in owner-occupier loans, which grew by 21.4%.
Mish Tan, head of finance statistics at the Australian Bureau of Statistics (ABS), attributes this surge to increased loan approvals, noting, “Investors have continued to see the largest growth in new loans over the past year.”
A tight rental market, higher rental yields, and a narrowing gap between owner-occupier and investor mortgage rates fuel this demand. In July, the average loan size for investors and owner-occupiers hit a record high of $641,000.
While investor activity remains strong, first-home buyer loans saw only marginal growth, though programs like the Home Guarantee Schemes have supported many in entering the market.
Experts expect both investor and owner-occupier activity to rise as confidence in the housing market strengthens.
