December 2021 Lending Indicators

The upward trend in lending continued in December for both owner occupiers and investors - feeding through from the higher sales numbers in September and October. We should see a higher increase in these figures over the next couple of months, although holiday disruptions may play a role in stretching out the peak resulting for the sales in November and early December.

The ratio of investor lending ticked down ever so slightly in December. With sentiment on housing appearing to be turning to subdued growth or declines precipitated by regulatory and monetary action expectations, it will be curious to see whether this cycle will feature a rush to Sydney investment properties. The alternative is that the price boom passes without investors. Typically, this would mean a lower number of apartments being built, which is so far consistent with ex-houses building approvals.

Note that these charts use seasonally adjusted ABS Lending Indicators data.