Financial 2020-21 saw houses reach a new record level of 147,624 approvals.
Investor loans increased 0.7 per cent following a 13.3 per cent spike in May, however, at 28.7 per cent, the share of loans remains well below the 46 per cent hit in April 2015, which promoted regulatory intervention.
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“The main question is around the extent of the upturn in investor activity and how well this will sustain the wider market,” Mr Hassan said.
BIS Oxford Economics’ Maree Kilroy said the upswing still had room to grow, with further increases projected for 2021-22. “This is set to feed the next apartment construction cycle,” he said.
Why regional markets will continue to soar post-stimulus packages
By Cameron Micallef
30 April 2021
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1 minute read
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Australia’s regional property market is tipped to continue its strong growth into 2023, despite government stimulus packages being withdrawn, new research has revealed.
Analysis by BIS Oxford Economics suggests that despite incoming bumps to dwelling supply due to government stimulus money and changing consumer preferences, regional markets are expected to remain tight.
Data released by Domain showed regional areas have outperformed over the last 12 months, with the March quarter being the first time capital cities have trumped the regions in over a year.
BIS Oxford Economics said regional property sales have been the major benefactors of government stimulus money. However, with changes in consumer preferences and significant increment to purchasing power, regional areas are likely to continue to show strong signs of growth.
Investors the only bright spot as new home loans fall
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Property investor loans were the only category to grow in February as new mortgage commitments to established owner-occupiers and first home buyers fell, new figures showed on Thursday.
New investor loan commitments excluding refinancing of existing loans rose 4.5 per cent in seasonally adjusted terms from January, even as owner-occupier loans slipped 1.8 per cent and new mortgages to first-time buyers fell 4 per cent.
While owner-occupiers have been the biggest driver of the current surge in house prices, the figures show investors are once again emerging as a force.
Pointing in one direction: Loans to housing investors are on the way up again.
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