New investor loan commitments rose 1.1 per cent to near record levels in October 2021 (seasonally adjusted), according to statistics released by the Australian Bureau of Statistics (ABS).

Real Estate Institute of Australia (REIA) President, Adrian Kelly said that it was positive news to see the return of mum and dad investors who have been particularly active in Queensland, South Australia and New South Wales.

“The housing market has seen significant growth over the past year and it was a sign this sector provided strong returns and future growth in many states and territories,” Mr Kelly said.

According to the ABS, the value of new loan commitments for investor housing has risen for 12 consecutive months, reaching $9.7 billion in October 2021 - the highest level since the all-time high in April 2015.

"While the value of investor loan commitments has grown 90 per cent over the past year, the number of investor loans only accounted for 33 per cent of all new loan commitments for housing in October."

Mr Kelly said new loan commitments to first home buyers fell for the ninth consecutive month creating further concerns of housing affordability with this group accounting for around 20% of the number of all new loan commitments in October.

“Of interest is that the drops in the number of owner-occupier first home buyer loan commitments were seen across most states and territories, with the ABS reporting Western Australia saw a massive fall of 13.8 per cent while Queensland fell by 6.3 per cent and New South Wales by 4.3 per cent.

“Small increases were recorded in Victoria which rose by 1.9 per cent while the Northern Territory increased by 6.0 per cent showing these sectors remain in high demand,” he said.