Invest
Big market of buyers push their way into popular property markets
Buyers who previously retreated from the market during the huge price hikes in 2016 are predicted to rejoin as the market shows signs of flattening and restricted access to credit eases.
Big market of buyers push their way into popular property markets
Buyers who previously retreated from the market during the huge price hikes in 2016 are predicted to rejoin as the market shows signs of flattening and restricted access to credit eases.
The latest Lending to Households and Businesses data from the Australian Bureau of Statistics (ABS) has reported that, in seasonally adjusted terms, the value of housing finance slipped by 2.4 per cent in May.
The decline was driven by a 2.7 per cent fall in the value of owner-occupied credit, while the value of investor lending dropped 1.7 per cent.
Mortgage Choice CEO Susan Mitchell attributed the decline to uncertainty in the market due to the May federal election.
“This decline in home loan demand is unsurprising when you consider the broader context of the macro environment at the time. Leading up to May, there was still a lot of uncertainty in the market in the lead-up to the federal election, and property prices continued on their downward trend, albeit at a slower pace than in preceding months,” said Ms Mitchell.
However, Maree Kilroy, economist at BIS Oxford Economics, expects upcoming data to reflect the spike in sentiment off the back of recent political and economic developments.
“The impact of the federal government’s income tax cuts and the Reserve Bank rate cuts will have a positive effect on lending demand from Q3 2019 onwards,” she said.
Ms Kilroy also expects a “cautious outlook” for inflation and wages growth to prompt a third adjustment from the RBA later in the year.
The ABS data also revealed that first home buyers (FHBs) increased their presence in the owner-occupied space, with their share of total commitments rising to 18.8 per cent in May, up from 18.2 per cent in April, and from 17.6 per cent in the same month last year.
According to senior economist at the Housing Industry Association, Geordan Murray, the rise in FHB activity also helped spark a 2.3 per cent rise in finance commitments for the construction of new homes.
“The credit squeeze that emerged from mid-2018 has seen lending for the construction of new homes contract sharply. This month’s data suggests that these conditions have started to ease,” he said.
RELATED ARTICLES
-
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
-
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
-
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
About the author
About the author
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more
Property
The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite
The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more
Property
The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite
The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Selling in 2025: How to spot bad agents fast—and build an ROI-first vendor playbook
In Australia’s property market, choosing the wrong listing agent isn’t just inconvenient—it’s a textbook principal–agent failure that can wipe tens of thousands off your sale outcomeRead more
Property
Selling in 2026: How to de‑risk your agent choice and protect tens of thousands at settlement
Choosing the wrong selling agent isn’t just an inconvenience — it’s a balance‑sheet risk. In a market where digital discovery is concentrated and AI is recasting how listings are priced and promoted, ...Read more
Property
Rate resilience in Australian housing: why scarce supply is overpowering monetary tightening
Australia’s housing market is defying higher borrowing costs because the binding constraint isn’t demand—it’s supply. Brokers report persistent buyer competition and investor repositioning, while ...Read more
