By James Glynn
SYDNEY--Australia's property market is roaring, with the total value of new investment loans for dwellings hitting a record high in the third quarter.
The number of new investment loans also rose by 13.6% to 57,624 in the quarter, its highest level since early 2022, the Australian Bureau of Statistics said Wednesday.
Falling borrowing costs and low rental vacancy rates are favorable conditions for investors, the ABS said.
The jump in investment lending comes as house prices grow at their fastest pace in two years, fanned by the Reserve Bank of Australia's three interest-rate cuts since February and government policy measures to support first homebuyers.
There were 57,624 new investment loans approved in the third quarter, reaching a value of 39.8 billion Australian dollars, equivalent to US$25.98 billion.
The average loan size rose by $11,686 to $685,634 over the quarter, the ABS said. Investment loans now total around 40% of total of new loans.
There was growth in the number of investment loans across all states and territories, with loans in New South Wales and Victoria expanding rapidly.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
November 11, 2025 20:37 ET (01:37 GMT)
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