The number of new investment loans for dwellings declined in the December quarter, marking the first decrease since the March quarter of 2023, according to the first quarterly 'Lending Indicators' data release by the Australian Bureau of Statistics (ABS) on Wednesday.
In contrast, new home loans (excluding refinancing) recorded their third consecutive quarterly increase.
During the December quarter of 2024, 83,206 new home loans were approved, reflecting a 2.2% increase from the previous quarter. The total value of these approvals rose by 4.2% to $54.8 billion, with the average loan size increasing by $24,777 to $665,978.
ABS head of finance statistics Dr Mish Tan commented: “While the number of new home loans rose in the December quarter, New South Wales partially offset this growth, falling 2.3 per cent, following a fall of 0.4 per cent in the September quarter.
“Demand for new home loans excluding refinancing rose throughout 2024, despite relatively strong growth in property prices. In original terms, the value of new home loans during the 2024 calendar year reached $205.7 billion. This was 13.6 per cent higher than the $181.0 billion value of new loans in 2023”.
The largest increases in loan values were observed in Queensland, up 19.6%, Victoria, adding 12.3%, and New South Wales, lifting 10.6%.
Meanwhile, investment loan approvals declined in the December quarter, with 48,876 new investment loans recorded, representing a 4.5% decrease from the previous quarter.
The total value of new investment loans fell by 2.9% to $32.4 billion. However, the average loan size increased by $25,065 to $674,316.
“The December quarter fall in the value new investment loans followed a record high of $33.4 billion in the September quarter, which was slightly higher than the COVID-19 peak in March 2022", Dr Tan said.
"Despite the December quarter fall, the value of new investment loans during the 2024 calendar year in original terms reached $125.1 billion. This was 29.8% higher than the $96.4 billion value of new loans in 2023.
Related content
