Powered by MOMENTUM MEDIA

Investor lending soars

By Francesca Krakue 11 November 2016 | 1 minute read

Fresh figures have revealed that investor lending continues to climb along with house prices. 

Investor lending

 

According to the ANZ Australian Economics Quick Reaction for November, the value of housing finance commitments increased by 1.8 per cent month-on-month in September, led by a solid month-on-month rise of 4.6 per cent in investor finance.

The jump in investor finance lifted annual growth to 9.6 per cent year-on-year, which according to ANZ is the first positive annual growth since July 2015.

“This likely reflects the fact that house prices continue to rise and auction clearance rates remain elevated and this will be closely monitored by policymakers in the coming months,” an ANZ representative said.

Advertisement
Advertisement

Meanwhile, the value of owner-occupied finance (excluding refinancing) fell by 0.8 per cent month-on-month in September.

Finance for first home buyers ticked up slightly by 0.9 per cent month-on-month, while finance for upgraders (excluding refinancing) fell by 1.1 per cent.

Further, the Quick Reaction found that the value of housing finance for the construction of new housing continues to weaken, alongside tighter surveyed lending conditions for developers.

“While there is a record backlog of construction work, this, together with the weaker than expected building approvals data for September, suggests approvals may be peaking,” said the ANZ representative.

 

RELATED TERMS

Property

Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.

About the author



Investor lending soars
Investor lending
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.