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Investors flee as home loans hit record low
Investor loans fell 30.6% as higher borrowing costs and tax changes pushed Australia’s total new home loan value to a record quarterly low, the ABS said.
- On Wednesday, the Australian Bureau of Statistics reported new home loans fell 15.5% in the September quarter to A$81.16 billion, marking the largest drop since late 2002.
- The slump follows five interest rate hikes by the Reserve Bank and federal budget tax changes introduced by Treasurer Jim Chalmers, with negative gearing restrictions beginning July 1, 2027.
- Investor loans dropped 30.6% to 35,301 over the quarter, while loans for existing homes in NSW collapsed by nearly 50% over the past three months, marking record declines.
- Housing Minister Clare O'Neil argued the data shows a "balance is shifting" toward homebuyers, though Master Builders Australia CEO Denita Wawn claimed tax changes hurt housing investment "at a time when we can least afford it."
- Despite residential slumps, business loans for apartment blocks and data centers soared 27.6% to a record $8.4 billion. Reserve Bank Governor Michele Bullock noted investor demand fell "so much further" than previous cycles, citing tax changes as the driver.
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New home loans dropped by a record 15% as Australia’s housing market downturn deepens
Linh Pham/UnsplashNew mortgage loans dropped by a record 15% in the September quarter as the housing market downturn deepened, led by a 30.6% dive in lending to investors, official figures on Wednesday showed. The Reserve Bank’s five interest rate hikes and stagnant real wages have hit housing demand from investors, first-home buyers and established home owners. Reforms to tax rules for investors have also contributed to sinking investor demand …
·Boston, United States
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Sydney Morning Herald+4 Reposted by 4 other sources
Record plunge in investor loans as tax overhaul hits property market
The federal government’s budget overhaul of negative gearing and capital gains tax has been blamed for the biggest fall in home loans taken out by investors on record, with warnings the property market will struggle well into next year.
·North Sydney, Australia
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Coverage Details
Total News Sources15
Leaning Left4Leaning Right3Center4Last UpdatedBias Distribution37% Left, 36% Center
Bias Distribution
- 37% of the sources lean Left, 36% of the sources are Center
37% Left
L 37%
C 36%
R 27%
Factuality
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