The May 2021 Lending to Households and Business figures released today by the Australian Bureau of Statistics show that the value of new loan commitments for housing increased again with investors back in force.

Real Estate Institute of Australia (REIA) President, Adrian Kelly said the statistics show that new housing loan commitments rose 4.9 per cent in May 2021 (seasonally adjusted) to a new high of $32.6 billion, driven by investor housing loan commitments.

"The value of new loan commitments for investor housing rose 13.3 per cent to $9.1 billion in May 2021, which was the highest level since April 2015.

“The value of investor loan commitments rose 116 per cent in the year to May 2021, after falling to a 20-year low in May 2020.

“Investor loans equated to 28 per cent of the total value of housing loan commitments in May 2021, compared to 46 per cent in 2015,” Mr Kelly said.

Mr Kelly said the results reflect the very strong interest market growth has generated in the past year.

“Investors and first home buyers alike are diving into the market with the latter taking advantage of the current government incentives,” he said.

Mr Kelly cautioned that lenders will continue to remain in high alert to potential lending restrictions in the future.

“APRA has consistently said their true north for changes to current policy settings will be household debt to income with banks showing signs of responding to this in changing some of their products on offer.

“Despite these strong lending results for investors, feedback on the ground from agents remains that many investors are taking the current high prices to offload investments in light of extensive reforms to residential tenancy laws in some jurisdictions.”

Similar to this: 

Intergenerational report shows it is time for reform for tax on homes - REIA

REIA urges agencies to be vigilant during lockdown

House prices increase at the highest quarterly rate in a decade - REIA