The latest lending figures released by the ABS confirm renewed confidence among home-buyers. Australians borrowed 2% more in June than they did in May.
Financing issued to owner-occupiers rose 2.4% to $12.4 billion, while investment loans increased 0.5% to $4.37 billion. The figures do not include refinancing.
“In June, we saw rises in new lending commitments for both owner-occupier and investor dwellings for the first time in over a year,” says Ben Dorber, director of financial statistics at ABS. “Investor lending, however, remains well down from its peak and the rise in June was relatively small.”
Market watchers say the improvement in lending figures could be brought about by the recent series of positive events.
“The June figures reflect the post-election boost in confidence following the removal of the uncertainty around property taxation,” says Adrian Kelly, president of Real Estate Institute of Australia. “With two interest-rate cuts and a softening in APRA requirements, June marks an upturn in market activity.”