Housing loans in Australia rise 1% in August

The total value of new housing loans in Australia increased by 1% in August, reaching $30.4 billion, according to the latest data from the Australian Bureau of Statistics.

The rise signals ongoing demand in the housing market, particularly among investors and owner-occupiers.

Mish Tan, head of finance statistics at the ABS, reported that the value of new investor loans rose 1.4% to $11.7 billion, marking a substantial 34.2% increase compared to August 2023 and nearing the previous peak recorded in January 2022.

Owner-occupier loans also saw a rise, climbing 0.7% to $18.7 billion, which is 16.8% higher than the same period last year.

The report highlighted significant state-by-state variations in housing loan trends.

"Lending in Queensland grew strongly over the past 12 months and was the key driver behind the August increase," said Tan.

The total value of housing lending in Queensland surged by over 40% in the past year, contributing an additional $2 billion—the highest increase among all states.

In contrast, the number of first-home buyer loans for owner-occupiers fell by 1.5% to 9,869 in August compared to the previous month.

However, this figure remains 9.2% higher than in August 2023.

Tan noted that much of this growth was driven by Queensland, while Victoria maintained a significant share, accounting for nearly one-third of Australia's first-home buyers.

In the realm of personal finance, the value of new loan commitments for fixed-term personal finance rose 2% to $2.7 billion, reflecting a 15.3% increase year-on-year.

Additionally, lending for the purchase of road vehicles increased by 0.6% in August.