Investment loans fly in October

Rohneel Kumar
Investment housing loans continue to outpace loans to owner-occupiers, with the latest Australian Bureau of Statistics showing the housing investment market moving nearly twice as fast as the wider market.

In seasonally adjusted terms, the total value of dwelling finance commitments, excluding alterations and additions, rose one per cent in October 2014 compared to September 2014, the ABS said yesterday.

However, investment loans jumped A$207 million, or 1.8 per cent, in October 2014 compared with the previous month.  

Rises were recorded in commitments for the purchase of dwellings for rent or resale (up 1.4 per cent), commitments for the construction of dwellings for rent or resale (up 5.7 per cent) and commitments for the purchase of dwellings by others for rent or resale (up 2.1 per cent).

But, according to ABS trend estimates, the number of commitments for owner occupied housing finance rose a mere $26 million or 0.2 per cent.

Between September and October 2014, the average loan size for first home buyers rose $4,300 to $314,500.

The average loan size for all owner occupied housing commitments rose $5,300 to $331,800 for the same period.