CommBank says investor retreat drives Australia's housing market downturn
SPY•CommBank said investor lending fell a record 32.3% in the September quarter, while total new housing lending dropped a record 15.5%, exceeding the bank’s forecast decline of 6.8%.
1. Investor lending falls
CommBank identified investors as a key driver of Australia's housing downturn, with investor lending down a record 32.3% in the September quarter. Total new housing lending fell a record 15.5%, compared with the bank's forecast decline of 6.8%.
2. Other lending measures
Owner-occupier lending excluding first-time buyers declined 5.3%, while lending to first-time buyers fell 8%. New builds accounted for 27.6% of investor lending in September, up from 17.3% in March.
3. Household debt
Housing debt excluding offset balances reached 115% of household income, roughly nine percentage points below its level when rate increases began in 2022.
