The number of new investment loans in Australia has hit a three-year high.
New Australian Bureau of Statistics (ABS) data showed new investment loans rose by 13.6 percent to 57,624 in the September quarter.
ABS head of finance statistics Dr Mish Tan said that number of loans was the highest since the March quarter in 2022.
“Falling borrowing costs and low vacancy rates are favourable conditions for investors,” Dr Tan said.
“Strength of lending for investment also pushed the total value of all new dwelling loans to a record high in September.”
She said the total value of new investment loans was $39.8 billion in the September quarter, a rise of 17.6 percent ($6.0 billion), with the average loan size rising by $11,686 to $685,634 over the quarter.
“The number of investment loans has increased since March 2023, with investment loans reaching around 40 percent of the total of new loans.”
Dr Tan said there was growth in the number of investment loans across all states and territories: New South Wales (19.0 percent), Victoria (18.5 percent), Queensland (11.9 percent), Western Australia (9.1 percent), South Australia (7.1 percent), Australian Capital Territory (27.8 percent), Tasmania (10.6 percent) and the Northern Territory (5.1 percent).
