Latest Australian Bureau of Statistics (ABS) lending figures show active investor participation in Victoria ahead of Stage Four restrictions.
The aggregate value of loan commitments in August increased 9.3% on a monthly basis, driven by increases in Victoria and Queensland. However, on an annual basis, investor loans were still down 4.6%.
The monthly uptrend was evident in other segments as well, with homeowner financing increasing 13.6% and first-time homebuyer commitments jumping 17.7%. Considering strong demand from all segments, the overall value of housing finance during the month increased by 12.6%
However, it is crucial to note that the surge in loan commitments in August reflects demand before the Fourth Stage restrictions in Victoria, said Amanda Seneviratne, head of finance at ABS.
"Lenders tell us that current processing times mean August commitments reflect customer demand in June and early July, before Victoria places restrictions on Steps 3 and 4" , she said.
Yet growth in funding commitments is a good indicator of growing demand, said Tim Hibbert, senior economist at BIS Oxford Economics.
"The latest data on lending indicators is encouraging, with households reacting strongly to historically low interest rates and various in-game buyer incentives. Growth is expected to slow over the next few months as Melbourne weighing negatively, "he said. .
Top suburbs:
Redcliffe
,
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,
Wall
,
spearwood
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Will Parliamentstown
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