Home lending picks up as investor activity grows

Australia’s housing loan market grew in the December 2024 quarter, with the total value of new loan commitments reaching $87.2 billion, up 1.4 per cent from the previous quarter and 16.0 per cent higher than the same period in 2023, according to the Australian Bureau of Statistics (ABS).

The growth was driven by owner-occupier loans, which rose 4.2 per cent to $54.8 billion for the quarter. Within this group, loans to non-first home buyers increased by 3.5 per cent, while first home buyer loans rose by 1.5 per cent, reaching $16.0 billion.

Investor activity moved in the opposite direction, with new investor loan commitments falling 2.9 per cent for the quarter to $32.4 billion. Despite this decline, investor lending remains 22.2 per cent higher compared to the December 2023 quarter.

The figures highlight ongoing demand for housing finance, particularly among owner-occupiers, while investors appear more cautious.