Despite continued efforts to stymie its growth, home loan growth to Australian property investors remained strong in May.
According to monthly financial aggregates data released by the RBA for May, the amount of lending for housing investment grew by 0.8%, or $4.5 billion, leaving the annual rate of growth unchanged at 10.4%.
The chart below shows the surge in outstanding housing investor debt seen over the past 15 years. From May 2000 it has increased by $415.6 billion, or 451%.
While loans to housing investors remained strong from a year earlier, the growth elsewhere was far more muted. Lending for owner-occupier property purchases increased by 5.7% while that for personal and business purposes rose by 0.8% and 5.2% respectively.