Investor lending is continuing to gather pace, according to the latest Australian Bureau of Statistics leading indicators.

ABS Head of Finance Statistics, Mish Tan, says lenders are also borrowing more, which likely reflects expectations of higher rental yields and the greater borrowing capacity of investors. The value of new loans to investors for housing rose 5.6% in April to $10.9 billion, which was 36.1% higher than at the same time last year. The average size of an investor loan for an existing dwelling is up from $592,000 to $648,000. The value of investor borrowing picked up pace the most in Queensland, up 46.6% and New South Wales, up 43.9%.

In Victoria investment loans were lower, perhaps reflecting the response by investors in that state to growing taxes and fees for investment property owners.
Instead, first home buyers are returning to the market in Victoria with the state recording the highest number, 2526, of first home buyer loans in April 2024.