Property prices have continued to rise, pushing the average owner-occupier mortgage to a new high of nearly $636,600 (US$414,000).
In June, the average loan size increased by 1.7 percent nationwide, according to the latest data from the Australian Bureau of Statistics (ABS) released on Aug. 2nd. This growth was driven by increasing housing values in mid-sized capitals like Brisbane, Perth, and Adelaide.
Despite weakening real estate markets in Sydney and Melbourne, dwelling prices in other cities have been on the rise, as reported by CoreLogic earlier this week.
Sally Tindall, research director at RateCity, noted that the average new mortgage for owner-occupiers has risen by almost $154 (US$100) per day over the past year. When factoring in interest costs over a 30-year mortgage, this figure doubles.
Compared to a year ago, the average loan amount has increased by around $56,360 (US$36,700).
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In Western Australia, the average owner-occupier mortgage has surged by nearly $100,000 (US$65,100) within a year.
Tindall expressed astonishment at this growth despite the rising cash rate. While there is strong demand in key capital cities, first-time buyers are facing challenges due to increasing property prices and interest rates.
The number of new mortgages for first-home buyers remains subdued, with only 9947 loans approved in the month.
Overall lending saw an increase in June, with the total value of lending to property investors, owner-occupiers, and first-home buyers rising by 1.3 percent following a 1.7 percent decline in May.
Year-on-year, housing lending is 19.1 percent higher compared to the previous year, with investor lending growth outpacing loans to owner-occupiers.
Owner-occupier loans totaled $18.2 billion (US$11.9 billion) in June, up by 0.5 percent, while investor loans increased by 2.7 percent to $11 billion (US$7.2 billion).
New investment loan growth was particularly strong in New South Wales, Queensland, and Western Australia, driven by factors like tight rental markets and competitive mortgage rates.
Oxford Economics Australia senior economist Maree Kilroy noted that the increasing demand from investors is also influenced by the narrowing gap between owner-occupier and investor mortgage rates.
Victoria saw a more modest increase in investment loans, reflecting adjustments in policies targeting investors.
