Investor borrowing in Australia’s property market is on the rise, nearing record levels and showing a strong resurgence. According to the latest data from the Australian Bureau of Statistics, property investors signed up for $11.708 billion worth of home loans in July 2024, marking a significant 49.2% increase since January 2023.
This upward trend follows a steady decline that began after investor borrowing hit an all-time high of $11.762 billion in January 2022, only to bottom out at $7.849 billion in January 2023. The strong resurgence in investor borrowing over the past 18 months suggests renewed confidence in the market as investors seek to capitalise on rising property prices and rents.
Comparatively, borrowing by owner-occupiers has risen by 22.5% over the same period. While still strong, it is clear that investors are driving much of the activity in the market.
What is fuelling this investor activity? Several factors seem to be at play, including rising property values, increasing rental income, and widespread speculation that interest rates may fall in early 2025. With the potential for declining rates, investors may see this as a prime opportunity to secure property at current price levels before borrowing costs decrease further.
As the property market continues to evolve, all eyes will be on how investor borrowing trends impact market dynamics in the months ahead.
