Investors Pile Into The Market

Investors are borrowing big to buy real estate as first-home buyers take a back seat, but the market-share of investors remains below historical averages.

Economist Nerida Conisbee says investors have not been put off by rising property prices and are taking out new loans at near-record levels.

ABS lending indicators show loans to investors rose by 1.1% to $9.73 billion in October, the highest amount recorded in six years and more than double the recent low point of $4.23 billion at the start of the pandemic in May 2020.

ABS head of finance and wealth Katherine Keenan says the value of new loan commitments for investor housing has grown for 12 consecutive months.

“While the value of investor loan commitments has grown 90% over the past year, the number of investor loans only accounted for 33% of all new loan commitments in October,” she says.