New home lending edged higher in the June quarter as investors led a modest pickup and owner occupiers posted a smaller rise, according to data released today by the Australian Bureau of Statistics.
Dr Mish Tan, ABS head of finance statistics said, ‘June quarter’s overall rise in home loans followed a fall in the March quarter. Through the year growth was more subdued at around 0.2 per cent. That said, lending activity is still at relatively high levels. While there were rate cuts in February and May, we will not see the full impact of these on new home lending activity until later in the year.’
The total number of new loan commitments for dwellings rose to 129,994 in the June quarter from 127,580 in March, with the total value up 2.0 per cent to $87.7 billion. Year on year, the number of loans was broadly flat, up about 0.2 per cent.
Owner occupier lending recorded 80,929 approvals, up 0.9 per cent (758 loans) on the quarter. The value rose 2.4 per cent to $54.7 billion and the average loan size increased by $17,804 to $678,011. ‘While the number of new owner occupier loans in the June quarter was slightly lower than this time last year, the value of loans rose by 7.4 per cent. The average loan size has grown by 7.5 per cent since the June quarter 2024. This was consistent with higher property prices, noting growth has been stronger in Queensland, South Australia and Western Australia,’ Dr Tan said. The quarterly rise in the number of owner occupier loans was driven by Queensland (up 255), South Australia (137), Tasmania (59) and the Northern Territory (57).
Investor lending saw 49,065 new loans approved, up 3.5 per cent (1,656 loans) from the March quarter. The value rose 1.4 per cent to $32.9 billion and the average loan size lifted by $1,103 to $674,259. ‘The 3.5 per cent quarterly growth in the number of investment loans follows two consecutive quarterly falls. While annual growth slowed to 0.8 per cent from 27.0 per cent in the June quarter 2024, the number of new loans remained historically high,’ Dr Tan said. The number of new investor loans rose in most states and territories, led by the Northern Territory (up 21.1 per cent or 96 loans) and Western Australia (up 1.4 per cent or 85 loans).
First home buyer activity increased, with 28,861 owner occupier loans, up 1.7 per cent (492 loans) over the quarter. Gains were recorded in Queensland (226), New South Wales (187), Victoria (88), Tasmania (80), the Australian Capital Territory (58) and the Northern Territory (32).
Refinancing between lenders rose by 0.3 per cent in the quarter to 65,205 and was 24.1 per cent higher than a year earlier.
All figures are seasonally adjusted and exclude refinancing unless stated. The ABS advises that concurrent seasonal adjustment can result in revisions to historical data.
Source: Australian Bureau of Statistics
