Housing loan commitments continue record run: Australia

New loan commitments for housing rose 10.5 per cent to $28.8 billion in January 2021 (seasonally adjusted), reaching another record high, according to Australian Bureau of Statistics (ABS) figures released today.

ABS head of Finance and Wealth, Katherine Keenan, said: “In January 2021, the value of new loan commitments for owner occupier housing was 52.3 per cent higher than in January 2020. The value of new loan commitments for existing dwellings was 38.7 per cent higher and the value for construction loan commitments was 141.0 per cent higher.”

“Since the HomeBuilder grant was introduced in June 2020, there have been record rises in the value of construction loan commitments. Loan applications made late in 2020 (prior to the reduction of the HomeBuilder grant on 1 January 2021), contributed to the strong rise in January’s construction loan commitments of 15.7 per cent.”

Owner occupier first home buyer loan commitments

In January 2021, the number of owner occupier first home buyer loan commitments rose 9.6 per cent, reaching the highest level since May 2009 (16,664, seasonally adjusted), when similar rapid growth was spurred by the temporary tripling of the first home owner grant in response to the global financial crisis. Compared to January 2020, there was a 70.8 per cent rise in owner occupier first home buyer loan commitments.

States and territories

The value of owner occupier home loan commitments rose across all states and territories and, with the exception of the Northern Territory, reached record high levels.

Loan commitments for investor housing and personal finance

The value of loan commitments for investor housing rose 9.4 per cent, the largest rise since September 2016, to reach $6.6 billion.

“Investor lending has rebounded 62.4 per cent since reaching a 20 year low in activity in May 2020.”, Ms Keenan said.

The value of new loan commitments for fixed term personal finance rose 0.2 per cent in January (seasonally adjusted).

/ABS Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.