Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Investor lending makes a comeback

New figures from the ABS have revealed that investor finance rebounded strongly in May by almost 4 per cent, its biggest monthly gain in 12 months.

The value of all dwelling commitments written throughout May was up by a total of 1.0 per cent on the previous month.

This uptick was bolstered by a notable increase in the value of fixed loans for investment housing which increased by 3.9 per cent during the same period.

The value of dwelling commitments for owner-occupied housing decreased by 0.6 per cent.

Advertisement
Advertisement

The number of dwelling commitments also decreased by 1.0 per cent for owner-occupied housing.

The number of dwellings constructed dipped by 2.7 per cent, as well as the purchase of established dwellings which fell by 0.9 per cent.

Meanwhile, the number of new dwellings purchased rose by 0.4 per cent.

HIA senior economist Shane Garrett said the drop in new home lending volumes occurred despite the reduction in the Reserve Bank’s official cash rate at the beginning of May.

“With the federal election result now clear, potential home buyers are likely to return to the market with a great deal more certainty,” Mr Garrett said.

“The prospect of another interest rate reduction later in the year will be welcomed by those looking to enter the market,” he continued.

“We expect new home lending volumes to strengthen over subsequent months as a greater number of apartments currently under construction reach settlement.”

 

Investor lending makes a comeback
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Dan Hadley JLB Adela... - Hi Ro,

Thanks for your question and it is actually quite a valid one. At present there are a number of companies working on flying car options. These.......
Lawrie - What happens when a payment is made by an employer prior to the 30th June (say 25th June this year) via a clearing house, but it takes the clearing.......
Dr Terry Dwyer, Dwye... - She is quite right of course. Returns to both capital and labour incomes are much reduced by taxation and it has increased enormously since the.......
Anonymous - A Bad call by the RBA. Lower interest will not stimulate the economy any more at 1.25% than at 1.5%, which was already too low. The imminent election.......