The property investment boom continues in Australia but data released by the ABS this morning for November suggests the peak may have passed.
The data showed that the total value of lending fell 1% seasonally adjusted for the month. The number of home loans for owner occupation fell by 0.7% seasonally adjusted against expectations of a rise of 2%, with the construction of dwellings falling 2.6%.
In trend terms the ABS showed a new all-time high for “buy to rent” housing which suggests that even though the overall percentage of investment lending has dipped a little from the recent high, the love affair Australian investors have in housing remains strong.
November feels like a long time ago now and it’s well before the collapse in consumer confidence we saw in December which suggests the miss in this data against expectations could be an indication of further weakness in lending over coming months, and a sign that house price increases will continue to moderate.