Investor housing finance drop picked up by owner occupiers

In another sign that macro-prudential measures are taking effect, the latest ABS Housing Finance data released today shows a further consecutive drop in investment loans, down 8.5 per cent in September seasonally adjusted and the lowest total since February this year.

The Property Council said the fall in housing finance to investors is being picked up by owner occupiers.

We want to see the right balance in Australia’s housing market with a strong investment pipeline servicing the rental market, good opportunities for owner occupiers and new supply calibrated to keep pressure off home prices.

Lending to owner occupiers increased 3 per cent in September, which is encouraging. But we need to closely watch the drop in lending to investors to ensure that the macro-prudential measures don’t go too far and reduce the levels of rental stock entering the market, which would push up rents.

Focusing on better understanding demand and supply should be a real priority for government as getting this right will boost housing construction which is not only good for affordability, but keeps the economy strong and creates jobs.

Source: www.therealestateconversation.com.au