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NSW enjoys residential investor...

NSW enjoys residential investor finance spike

Investors appear to be rushing back to the housing markets, with activity levels rising to levels higher than those recorded last year. 

This is according to the latest data from the Australian Bureau of Statistics (ABS), which reveals that the national value of loans approved to investors over September surged by 5.8 per cent month-on-month to $12.7 billion, Domain reports. 

Compared to the corresponding figure recorded in September 2015, this is an increase of 9.5 per cent. 

However, the total value of residential investor finance recorded over the first nine months of this year is still 13.2 per cent lower than it was during the same period last year.

The strongest performing area in terms of investor finance was identified as New South Wales (NSW), which enjoyed increased investor activity in September of 8.9 per cent on the month and 13.7 per cent year-on-year, taking the total value of loan approvals for the month to a value of $6.2 billion. 

Some 48.7 per cent of all residential investor lending activity throughout Australia is now accounted for by NSW, which is the highest national market share recorded since the boom period of 2003. 

Investor lending within NSW accounted for 57.6 percent of all lending for housing purchases that were reported in the state in September - and this is the highest market share recorded since July 2015. 

Domain Group chief economist Andrew Wilson noted that the major cities remain important sites. 

"Rising house prices continues to attract residential investors generally with the strong Sydney and Melbourne markets remaining key targets," he remarked. 

"Increased investor activity will continue to put upward pressure on house prices with tax-enhanced residential investment set to remain a favoured option in a low growth, low yield low interest rate economy."

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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