Latest ABS home investor loan data confirms the unrelenting boom
in residential l investment activity.
The original value of home loans for investors approved
nationally surged by 18.2 percent over December to a new record high
$13.8bn. Investor activity now accounts
for 50.8 percent of all home loan approvals.
NSW and Victoria each recorded new monthly record highs for investor
loan approvals in December. NSW loans increased
by 12.3 percent over the month to $6.3bn, with Victorian loans up by 32.3
percent to $3.7bn.
Investor home loans in New South Wales increased strongly by
35.5 percent over 2014 – clearly the best performance of all the states.
NSW now accounts for 45.1 percent of all national home loan
activity for investors with Victoria accounting for 26.7 percent.
NSW investors are responsible for 59 percent of home loan
approvals in that state with Victorian investors accounting for a 50.2 percent total
local market share.
Lower interest rates are set to increase investor activity
particularly in the strong Sydney market reinforced by rising rents and prices,
low vacancy rates and low and falling bank deposit rates.
Latest unemployment data from the ABS reporting a national
rate of 6.4 percent – the highest in 12 years – indicates more interest rate
cuts on the horizon.
Dr Andrew Wilson is Domain Group Senior Economist
Twitter@DocAndrewWilson
