What happened
Data from the Australian Bureau of Statistics showed new home loans fell 5.4% over the three months to June. While owner-occupier borrowing saw minor declines, investor lending dropped sharply due to cumulative Reserve Bank rate increases, falling house prices, and federal changes to capital gains tax and negative gearing.
Why it matters here
Property investors are pulling back rapidly as higher borrowing costs and reduced tax incentives squeeze yields. Lower buyer demand is directly dampening auction activity, with open homes averaging just two attendees, creating a buyer's market for owner-occupiers but softening capital growth prospects across residential real estate.
What to watch
Upcoming housing finance updates from the Australian Bureau of Statistics alongside weekly capital city open home attendance and auction clearance rates over the spring property season.
Source
youtube.com