Investors flock to Brisbane but other cities subdued

Queensland has become a hot spot of investor activity, recording a 6.8 per cent surge in new lending for housing investments in July.

While investor lending has been more hit and miss in the other states, Australian Bureau of Statistics data revealed a 31 per cent lift in the value of investor lending in Queensland since February.

The state's capital city also reported the strongest monthly growth in property values of all the major urban centres in August, according to new data from CoreLogic.

Looking nationally, the fresh ABS lending indicator data revealed a 1.2 per cent fall for new loan commitments in the broader housing category. 

Housing-related lending is now 14.1 per cent lower than a year ago.

Owner-occupier lending sank 1.9 per cent, and new investor loans largely held firm.

Data on housing prices was also released on Friday, with the CoreLogic index revealing a further 0.8 per cent increase in August.

The result was bolstered by a 1.5 per cent lift for Brisbane and robust 1.1 per cent increases in the Sydney and Adelaide markets.

Lower than average advertised supply levels have put upwards pressure on home values across most capital cities, while flatlining interest rates are boosting buyer confidence.

CoreLogic research director Tim Lawless said the trends across different regions were mixed. 

"Sydney has led the recovery trend to-date with a gain of 8.8 per cent since values found a floor in January this year," he said.

"Brisbane has also posted a strong recovery with values up 6.2 per cent since bottoming out in February.

“At the other end of the scale, some other capital cities are better described as flat, with Hobart home values unchanged since stabilising in April, while values across the ACT have risen only mildly, up one per cent since a trough in April."

Hobart and Canberra are witnessing higher supply than a year ago, which contributed to the stability of values in the two cities.

Oxford Economics Australia economist Maree Kilroy said there were risks hanging over the housing market rebound, including the expiry of thousands more fixed-rate mortgages.

"We expect a lift in pressured sales through this financial year as the wave of fixed-rate mortgages continues to roll over, although the magnitude of this uplift remains uncertain," she said.

Ms Kilroy said mild corrections were possible for some cities from the end of 2023, noting that listings were starting to creep up in Sydney and Melbourne.

Home buyers will be keen to see what the Reserve Bank board does with interest rates when it meets on Tuesday.

The RBA is widely expected to keep the cash rate on hold at 4.1 per cent for a third month in a row.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.

Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store