Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

 

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.

Advertisement
Advertisement

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

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
Dr Terry Dwyer, Dwye... - He did not seem to have read the Coronation service and realized the Sovereign is the Lord's Anointed and that there was a Restoration so private.......
DavidL - Why has it been used in high rise construction if it has never been approved for that purpose? How does it get past building inspectors in the first place?....
Mort - This is absolute nonsense from the shadow treasurer, who should know better. Why has Labor excluded non tax paying Commonwealth pensioners, if not for.......
Howard Patterson - It is not a matter of banning the product, it may be perfectly safe on a low rise building. When all the humbug is stripped away, the fact is that.......