According to the Australian Bureau of Statistics, new lending commitments for investment housing rose by 5.7% in August. This recent growth was higher than July's 4.2% and the largest monthly increase since September 2016.
The strong improvement in investment loans stems from the good performance of Queensland and Victoria, where investor lending rose by 10.4% and 9.5% respectively.
Despite the monthly rise in lending to investors, its annual growth is still in the red at 13%.
"However, it is the smallest negative result in almost two years," said ANZ analysts in a note.
Tom Devitt, economist of the Housing Industry Association, said the Reserve Bank of Australia's (RBA) rate cuts, income tax cuts and looser rules on the ability of loans have encouraged the growth of loans to investors.
"Given the mismatch between loan applications and final approval, it is likely that the data will not yet fully exploit the recent stimulus packages and that they will provide support added to the market during the year, "he said.
Overall, the value of new household loan commitments increased by 3.2%. In addition to lending to investors, financial commitments by first-time buyers also contributed to overall growth, rising 5.2% in the month.
Tim Lawless, Head of Research at CoreLogic, said the increase in overall lending may indicate that buyers and investors are benefiting from rate cuts and looser mortgage rules.
"But seeing investors' financing commitments increase as much as they've had during the month – that's probably the biggest surprise – and I think another factor is simply because lenders are becoming more competitive for businesses, "he told New Daily.
Top suburbs:
Newcastle
,
Westbrook
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sunshine
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mt colah
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Leumeah
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