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    Australia's two trillion dollar love affair with property

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    Highlights
    • Big four banks account for 75% of owner-occupier loans.
    • Lending balance for property approaching A$2 trillion.
    • $800 billion lent to the business sector.

    More than 60 cents in every dollar lent by institutions with an Australian banking license is for the sole purpose of property according to data compiled from Australia's Prudential Regulatory Authority.

    For Australia's big four banks, that figure is closer to 70 cents as record low interest rates continue to provide a near term tailwind for would-be first home buyers.

    Australia's domestic banks account for than 90% of lending to banks nationally while foreign banks operating in Australia are primarily lending to businesses.

    Residential house prices across the country have experienced the strongest growth in more than 25 years according to the Australian Bureau of Statistics.

    The APRA data reveals a property sector where the loan balances for owner occupier homes stands at $1.2 trillion versus $647 billion for investment property.

    Loans to Australia's business sector stand at $800 billion as at the end of March.

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