Investor property lending surges

The latest housing finance figures show that investor demand for finance is still strong, despite warnings from the regulator that growth needs to be restrained and moves by banks to tighten underwriting standards.

According to Australian Bureau of Statistics, the value of new investor property lending rose 6.4 per cent in March, compared with the previous month (in seasonally adjusted terms).

The value of investor property lending fell 3.4 per cent in February, suggesting that the Australian Prudential Regulation Authority's call to keep investor lending at manageable levels was working. But the March figures show how much strength there is in the investor market.

The value of owner-occupied housing finance approvals was up 1.6 per cent in March, compared with the previous month.

Overall, the value of new housing finance commitments increased by 3.5 per cent in March to A$31.6 billion.

The average housing loan in March was $342,500 - up from $337,100 in February.