What happened
ABS data reveals property investor loan commitments fell 8.6% in the June 2026 quarter, while mortgage aggregator data shows lodgements down 44% since January. While the share of investor loans targeting new construction reached historic highs following Federal Budget tax shifts, total established home investor lending collapsed significantly.
Why it matters here
Government attempts to channel private investment from existing dwellings into new construction are failing to boost net housing supply. Instead, elevated borrowing costs, building supply shortages, and reduced tax incentives are causing property investors to exit the market entirely or stay on the sidelines.
What to watch
The release of upcoming quarterly ABS lending indicator updates and monthly residential building approval figures to gauge whether investor loan demand continues to soften.
Source
australianpropertyupdate.com.au