Investor housing loan commitments rise 13.3 per cent: Australia

New housing loan commitments rose 4.9 per cent in May 2021 (seasonally adjusted) to a new high of $32.6 billion, driven by investor housing loan commitments, according to statistics released today by the Australian Bureau of Statistics (ABS).

ABS head of Finance and Wealth, Katherine Keenan, said: “The value of new loan commitments for investor housing rose 13.3 per cent to $9.1 billion in May 2021, which was the highest level since April 2015.”

“The value of investor loan commitments rose 116 per cent in the year to May 2021, after falling to a 20 year low in May 2020.”

“Investor loans equated to 28 per cent of the total value of housing loan commitments in May 2021, compared to 46 per cent in 2015. This reflects the very strong growth in owner occupier loan commitments over the last year.”

Value of new loan commitments to households for housing, Australia (seasonally adjusted)

Total (ex. refinancing)Owner occupier (ex. refinancing)Investor (ex. refinancing)OO FHBs
May-0312.3527.3624.9891.3994
Jun-0312.627.6175.0031.4198
Jul-0313.5717.8075.7641.4519
Aug-0314.2557.9866.2691.5131
Sep-0314.2288.026.2081.5295
Oct-0314.4368.0476.3881.4746
Nov-0313.9927.8586.1351.4169
Dec-0313.2987.4595.8391.3606
Jan-0412.2856.9985.2871.3077
Feb-0412.3187.0715.2471.2558
Mar-0412.4537.1715.2821.2766
Apr-0412.4867.245.2461.3508
May-0412.3477.2715.0771.4544
Jun-0411.87.2564.5441.5014
Jul-0412.0177.324.6961.5842
Aug-0412.0537.3984.6551.6818
Sep-0412.2187.424.7981.6703
Oct-0411.9717.4294.5421.6386
Nov-0412.567.6834.8781.7012
Dec-0412.9147.9025.0121.7849
Jan-0513.2348.1075.1281.8949
Feb-0513.8268.4915.3351.9465
Mar-0513.528.2345.2871.9213
Apr-0513.3098.1475.1621.9214
May-0512.687.9774.7031.9888
Jun-0512.6878.1544.5332.0254
Jul-0512.8278.084.7471.9735
Aug-0512.878.2794.5922.1116
Sep-0513.5198.6354.8842.2146
Oct-0514.0348.7325.3012.2284
Nov-0514.0598.8575.2022.34
Dec-0514.0588.9035.1552.3398
Jan-0614.2798.9665.3132.3318
Feb-0614.4259.1765.2482.4113
Mar-0614.5789.2985.282.5512
Apr-0614.5099.2595.252.5533
May-0615.4049.6425.7632.4847
Jun-0615.5439.5136.032.4437
Jul-0615.2569.7695.4872.4556
Aug-0615.049.5185.5222.2905
Sep-0614.1669.1784.9882.4215
Oct-0614.3299.2935.0372.4137
Nov-0614.1999.2274.9722.4107
Dec-0614.619.435.1812.4075
Jan-0714.9279.5445.3842.3899
Feb-0715.3999.7665.6332.4889
Mar-0715.89710.0695.8292.5762
Apr-0716.36310.3226.0412.6318
May-0717.05210.6476.4042.6165
Jun-0718.30211.3566.9472.769
Jul-0717.40710.776.6372.712
Aug-0717.39911.0186.3812.7295
Sep-0716.82910.5166.3132.6384
Oct-0716.81610.7386.0772.72
Nov-0716.98610.6546.3322.7076
Dec-0716.55710.3716.1862.7067
Jan-0816.89910.8056.0942.7624
Feb-0815.6569.885.7762.5434
Mar-0814.559.1385.4122.2878
Apr-0813.9058.7445.162.2356
May-0812.968.1684.7922.1598
Jun-0812.9618.1994.7622.1808
Jul-0812.7868.1364.652.2504
Aug-0812.6437.9794.6642.2616
Sep-0812.9788.2374.7412.3608
Oct-0813.3478.5394.8082.4063
Nov-0813.0988.6064.4923.0754
Dec-0813.8869.3374.5493.6552
Jan-0914.89410.2334.6614.1843
Feb-0915.36610.7824.5844.5251
Mar-0916.7111.9614.7495.083
Apr-0917.04111.9555.0855.1961
May-0916.84911.8225.0275.0758
Jun-0917.20811.965.2474.9354
Jul-0917.16911.7295.444.4387
Aug-0917.35111.6445.7064.2047
Sep-0917.88612.1815.7064.3306
Oct-0917.61211.8195.7934.267
Nov-0917.07511.095.9853.549
Dec-0916.50210.6175.8853.2495
Jan-1015.95510.1245.8312.948
Feb-1015.6699.7945.8762.6469
Mar-1015.5199.5725.9482.3257
Apr-1015.2589.365.8982.2723
May-1015.4239.4335.992.3098
Jun-1015.1199.135.9892.1013
Jul-1015.0489.2915.7562.1666
Aug-1014.6369.2345.4022.1047
Sep-1014.6179.1435.4742.0992
Oct-1014.6589.1765.4822.0245
Nov-1014.7119.3215.392.073
Dec-1014.9999.4265.5732.2655
Jan-1114.1599.0155.1442.0171
Feb-1114.0648.8725.1921.9443
Mar-1113.6288.8284.82.0857
Apr-1113.9949.0044.992.176
May-1114.2389.0815.1572.1554
Jun-1114.1379.0985.0392.0934
Jul-1114.0859.0355.052.089
Aug-1114.1579.0265.1312.188
Sep-1113.9318.7935.1382.275
Oct-1113.8588.8644.9932.4392
Nov-1114.0528.9735.0792.5071
Dec-1114.739.4065.3242.8923
Jan-1214.7749.3975.3762.7431
Feb-1214.0688.6675.4022.2358
Mar-1214.1018.7115.392.2362
Apr-1214.3498.9265.4232.2533
May-1214.519.1065.4042.3636
Jun-1214.7369.2525.4842.4639
Jul-1214.7719.2725.4992.5261
Aug-1214.8599.4275.4322.5587
Sep-1215.0959.4935.6022.5354
Oct-1214.8859.3715.5142.5074
Nov-1215.2139.4635.752.3733
Dec-1215.3749.5315.8432.2813
Jan-1315.9029.7996.1032.3582
Feb-1316.1479.886.2672.3558
Mar-1316.88110.3496.5322.4321
Apr-1316.94710.3056.6422.4394
May-1317.2110.4086.8022.5107
Jun-1317.32210.4966.8262.5342
Jul-1317.4410.4836.9572.5704
Aug-1317.36610.247.1262.531
Sep-1318.17210.7377.4362.5052
Oct-1318.68910.8957.7942.4931
Nov-1319.26111.2278.0342.532
Dec-1319.00810.9538.0552.435
Jan-1419.14711.1617.9862.5585
Feb-1419.40311.4577.9462.5958
Mar-1419.49411.3878.1082.6168
Apr-1419.60111.3218.282.4992
May-1419.50111.2288.2732.5716
Jun-1419.64311.3928.2512.6249
Jul-1419.81411.2718.5442.4777
Aug-1419.60710.9558.6522.4694
Sep-1419.95911.0868.8722.4739
Oct-1420.53911.3949.1462.4949
Nov-1420.12111.0339.0882.4209
Dec-1420.43511.3489.0872.4039
Jan-1520.7311.5629.1682.3629
Feb-1520.16611.3058.8612.5158
Mar-1521.24811.7229.5262.5754
Apr-1521.91811.83910.0792.555
May-1520.28511.1229.1632.4094
Jun-1521.12811.9789.1512.4789
Jul-1521.12112.2788.8422.4174
Aug-1521.68813.1978.492.4039
Sep-1520.8813.5097.3712.4401
Oct-1519.99913.1346.8652.3227
Nov-1519.68113.0376.6442.3533
Dec-1519.63212.9376.6952.4687
Jan-1619.13212.5486.5842.4164
Feb-1619.34612.6886.6582.4211
Mar-1619.11812.4576.6612.3612
Apr-1619.71312.8076.9062.4933
May-1619.97512.7547.2212.442
Jun-1620.23212.7077.5252.4088
Jul-1620.06612.4217.6452.3233
Aug-1619.79312.2167.5762.2611
Sep-1620.73612.4398.2962.3179
Oct-1621.07812.5328.5462.3706
Nov-1621.49812.7178.7812.3568
Dec-1622.05513.1598.8962.3976
Jan-1722.22913.2348.9952.3685
Feb-1721.77213.1918.5812.3359
Mar-1722.67513.7778.8982.4353
Apr-1722.25713.5728.6852.4658
May-1722.54814.1038.4452.5053
Jun-1722.18614.0068.1812.6316
Jul-1722.08614.1767.912.995
Aug-1722.37114.4237.9483.1852
Sep-1722.02714.2687.7593.0592
Oct-1721.43513.9627.4733.0986
Nov-1721.42414.1017.3233.2331
Dec-1721.2814.177.1113.2648
Jan-1821.13514.1836.9523.2468
Feb-1821.13214.1636.9683.3061
Mar-1820.44213.8696.5733.2451
Apr-1820.32113.8636.4593.2343
May-1820.92214.3546.5683.3451
Jun-1820.4514.0756.3753.3429
Jul-1820.30513.9316.3753.2822
Aug-1819.23413.1946.0393.1675
Sep-1818.59112.8085.7823.0989
Oct-1818.48512.8885.5973.15
Nov-1817.71612.4545.2623.125
Dec-181711.9155.0852.8629
Jan-1916.71811.7914.9282.873
Feb-1917.02612.1154.9113.015
Mar-1916.48811.6584.833.0099
Apr-1916.68711.8764.8123.0765
May-1916.51111.7244.7883.1608
Jun-1916.77911.9674.8123.223
Jul-1917.07112.1244.9473.377
Aug-1917.68812.4865.2023.5775
Sep-1917.79512.7875.0083.6202
Oct-1918.14413.1165.0283.6569
Nov-1919.16713.9125.2553.9042
Dec-1919.77814.4115.3674.0365
Jan-2019.75714.3985.3594.0953
Feb-2019.12413.925.2034.0941
Mar-2019.26914.25.0694.1972
Apr-2018.46913.5274.9424.1699
May-2016.66312.4384.2253.7705
Jun-2017.54712.9984.5483.9033
Jul-2019.09514.3884.7084.2919
Aug-2020.86915.934.9394.991
Sep-2022.37517.1235.2515.3944
Oct-2022.36317.2315.1325.4281
Nov-2023.60618.2035.4035.728
Dec-2025.93519.9915.9456.492
Jan-2128.47721.9376.5417.0697
Feb-2128.65921.7596.9016.8391
Mar-2129.95122.0617.896.8207
Apr-2131.05623.0028.0546.6891
May-2132.56523.4379.1276.8534

The rise in investor loan commitments was concentrated in New South Wales and Victoria which rose by 12.1 per cent and 17.4 per cent, in May 2021.

New loan commitments for owner occupiers rose 1.9 per cent to $23.4 billion, the highest level since the series began.

However, for the third consecutive month there were falls in the value of loan commitments for residential land and the construction of new dwellings.

While the number of loan commitments to owner occupier first home buyers fell 0.8 per cent to 15,050, it remained at historically high levels.

“First home buyer activity remained at high levels in New South Wales and Victoria. However, the number of first home buyers has fallen over the last few months in Queensland, Western Australia and South Australia, following the cessation of HomeBuilder and state government initiatives, such as the Building Bonus Grant in Western Australia”, Ms Keenan said.

The value of new loan commitments for fixed term personal finance rose 5.6 per cent in May 2021 (seasonally adjusted). This was driven by lending for road vehicles which rose 4.7 per cent and lending for personal investment which rose 11.6 per cent, following a 25.2 percent rise in April.

/ABS Public Release. This material comes from the originating organization/author(s)and may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.