GROWING THE SOUTH-WEST | Investors have left the building

NEW HOUSING STARTS: Housing estate at Liverpool. Picture: Rob Homer
NEW HOUSING STARTS: Housing estate at Liverpool. Picture: Rob Homer

The value of lending to housing investors dropped 10 per cent since APRA intervened in 2016. Housing investors are vital for rental accommodation to house a growing workforce.

Investors have been hit by regulation changes, affecting new starts, particularly apartments. Investor decline was partly offset by a rise in first-home buyers. The value of first-home loans rose by $1.4b to $8.8b in Dec/Jan/Feb. But the value of loans to investors dwarfed the rise in first-home buyer loans which fell by $3.7b over that period. This drop in new-home investment will affect long-term affordability.

Investor lending dropped 0.3 per cent compared with the previous quarter..

  • Tim Reardon, principal economist, hia.com.au

Comments