Investor lending rose 1.6 per cent over July despite tougher restrictions, according to data from RateCity, which the company’s money editor Sally Tindall said showed resilience on the part of investors.

“The APRA intervention initially took the steam out of the property market, but the latest figures confirm buyers are choosing to wear the rate hikes,” Ms Tindall said.

“APRA has been focused on deterring investor growth over two years now with limited success. If they’re serious about reducing the dominance of investors, APRA may have to introduce a bigger stick to fend them off.”

According to RateCity data, the percentage of fixed rate loans is at its highest percentage since November 2013 at 17.5 per cent in June 2017.

“This is a clear reaction to the out-of-cycle rate hikes from the banks as borrowers move to protect themselves from future increases,” Ms Tindall said.

Further RateCity data shows fixed rates bottomed out at 12.5 per cent in November 2016. After half a year, borrowers are now confirming this bottom has passed.

“With the spring real estate market just around the corner and auction rates continuing to make modest improvements, it will be interesting to see whether it will be game on again for the spring property market,” Ms Tindall added.