REIA welcomes rising ‘relief’ of investors

Digging deeper into the figures, investor activity showed positive growth during the month, with lending to prospective landlords rising 1.9 per ent to $9.7 billion – 18 per cent higher compared to a year ago. Owner-occupier borrowing, meanwhile, rose 0.5 per cent to $17.9 billion, which represents a 10.6 per cent increase in the cohort’s activity from November 2022.

The news was welcomed by the Real Estate Institute of Australia (REIA), with the organisation’s president, Leanne Pilkington, commenting that the figures were a “relief” as they revealed strong housing growth over the past year and a trend of investors making their intentions known.

“The value of new loan commitments to investors has started to increase, in particular ACT saw phenomenal growth in November with the value rising by 18.4 per cent,” Ms Pilkington stated.

However, she noted that the upward momentum was not universal, with the value of loans to investors in Tasmania falling 11.8 per cent during the month.

Owner-occupier activity, however, showed signs of stabilisation in Tasmania, as it did in NSW as well.

Overall loan activity rose in Queensland by 3.3 per cent, in Victoria by 2 per cent, in South Australia by 6.9 per cent, in the ACT by 9.4 per cent, and in the Northern Territory by 6 per cent. NSW fell by 1.1 per cent, Western Australia receded by 2.9 per cent, and Tasmania dropped by 15.2 per cent.

Ms Pilkington noted that these figures – coupled with last week’s data that the Consumer Price Index had risen just 4.3 per cent in the 12 months to November 2023, down from 4.9 per cent in October 2023 – showed positive momentum for the nation’s property sector.

The institute head said that all signs showed “the economy is now heading in the right direction”.