Investors return as rental yields improve
Investor lending is at its highest share of new commitments since 2015, concentrated in Perth, Brisbane and regional Queensland.
Investors accounted for 39 per cent of new housing lending commitments in the June quarter, the highest share since 2015, according to ABS lending indicators released this week.
The shift is regionally concentrated. Perth, Darwin and regional Queensland account for a disproportionate share of the increase, reflecting gross yields of 4.4 per cent, 6.4 per cent and above 5 per cent respectively — levels that clear the hurdle rate for a leveraged investor at current mortgage pricing for the first time since 2021.
First home buyer participation has moved in the opposite direction, falling for three consecutive quarters to 26 per cent of owner-occupier commitments.
Lenders report that investor applications are also better capitalised than in previous cycles, with average deposits above 30 per cent, which limits the systemic risk but also concentrates activity among existing property owners.
Sources
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