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ABS says investments in propert...

ABS says investments in property in Canberra have seen a surge

According to data from the Australian Bureau of Statistics (ABS), property investors have surged back into Canberra's housing market.

These rising levels of activity have been noticed after there was a significantly subdued period of lending throughout 2015, reports Domain.

The reason for the slump in lending was due to new policy initiatives that were introduced by a financial regulator last year.

Figures from the ABS show that the value of residential property lending that was approved throughout December in Canberra increased by 14.2 per cent.

In terms of monetary value, this translates to an increase of $160.7 million (£82.8 million), which is the highest amount recorded since July 2015.

However, the trend of residential investor lending was at its peak in June last year, when it was recorded at $224.1 million.

Across the entirety of 2015, total home investor lending came to $2.07 billion, which was a 7.1 per cent improvement over the previous year. However, December 2014 showed a performance that was 23.1 per cent higher than in the final month of last year.

Additionally, Canberra wasn't the only area to see an improvement in investor lending, as all other states and territories reported their own increases in December, when compared to November.

Loans to people in Victoria were up by 12.4 per cent during this time, while New South Wales, Western Australia and South Australia saw an increase of 5.8 per cent, 8.7 per cent and 5.3 per cent respectively.

The data that has been collected by the ABS shows that there is an appetite from investors for residential property in the ACT. Not only this, but investors are showing an interest in property investment throughout nearly all the country's states and territories.

Is it this interest that is seeing a revival of residential investor lending, and it seems likely to continue throughout this year.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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