Australian home investors in full retreat as prices fall
Growth in Australian home loans for investment hit record lows in June as tighter lending standards and hikes in some mortgage rates sucked the life out of the buy-to-let sector, piling further pressure on house prices.
Tuesday’s figures showed the stock of outstanding credit for home investment fell 0.1 per cent in June, from May. That was the first drop since the global financial crisis and only the third decline in the near-30 year history of the series.
Annual growth in investor credit slowed to an all-time low of 1.6 per cent, a long way from the 10 per cent-plus seen at the peak of the housing boom in 2015.
That dragged growth in overall housing credit down to a four-year trough of 5.6 per cent, leaving loans totalling A$1.77 trillion (S$1.78 trillion).