Investors are showing increased confidence in the market, with recent ABS lending figures revealing a significant uptick in investment activity.
In August alone, almost $12 billion in investment loans were written, marking a 1.4% increase from the previous month and a substantial 34.2% surge compared to the same period in 2023, with the percentage using Buyers Agent.
According to Mish Tan, the ABS head of finance statistics, the value of investor loans is steadily approaching its previous peak in January 2022. Not only did investor activity rise, but owner-occupier loans also saw a boost, increasing by 0.7% to $18.7 billion in August, a 16.8% jump from August 2023.
Among the states,
–> Queensland emerged as the frontrunner for investment loans, experiencing a notable 7.9% increase in new commitments during the month.
–> South Australia followed closely with a 5.1% rise,
–> ACT saw a modest 0.4% uptick.
–> Tasmania, Western Australia, Northern Territory, and Victoria witnessed declines in investment loan values, while New South Wales remained unchanged since July.
Tan highlights Queensland’s exceptional performance, noting a remarkable over 40% increase in the past year, surpassing all other states with a $2.0 billion rise. The data indicates a dynamic market landscape with varying trends across different regions.