New Lending On The Rise

It appears that investors are becoming more active in markets across Australia, based on the
latest lending figures from the ABS.

New lending to investors is certainly on the rise, with a 6.2% increase in May 2023. Lending
to owner-occupiers saw a more modest increase of 4% during the month.

This indicates that investor buyers are becoming increasingly active in the market, despite the
12 interest rate rises since May 2022 – providing further evidence that economists are wrong
when they assume that interest rate trends determine everything in real estate.

These new loan commitments have brought lending volumes to a level that is 45% above the
recent low in June 2020 – back when interest rates were at record lows.