$1.4b fall: Investor retreat likely to be long term now

first_imgInvestor borrowing for housing has continued to fall since APRA began its crackdown, which could impact places like the Gold Coast that attract a lot of southern buyers.INVESTOR borrowing for the housing market has dropped by a massive $1.4b in the past year, a fall analysts now believe will be long term — giving fresh hope to first home buyers.Latest housing finance figures by the Australian Bureau of Statistics show investor housing commitments were down by 2.6 per cent in December last year, which saw a fall of 10.5 per cent over 2017, seasonally adjusted.RateCity money editor, Sally Tindall, said the fall was a direct result of intervention by government regulator the Australian Prudential Regulation Authority.“APRA has been trying to curb investor lending for four years now. They’re finally getting long-term results,” she said.“The first time APRA cracked down on investor lending we saw an immediate drop in investor figures but the numbers started climbing back up within six months. This time around, APRA seems to be hitting the mark.”She said the 10.5 per cent drop equated to a fall of $1.4 billion in the past 12 months to investors.“First home buyers have been making traction over the last year, taking advantage of the retreat from investors. Today’s figures, while marginally down from the previous month, show a year-on-year increase in market share from 13.8 per cent to 17.9 per cent. It’s good to see these buyers securing a bigger slice of our property market.”More from newsParks and wildlife the new lust-haves post coronavirus21 hours agoNoosa’s best beachfront penthouse is about to hit the market21 hours agoThe figures showed investors borrowed a whopping $11.81b year on year.Investor housing, year on yearDec.-16 $13.199bDec.-17 $11.816bFall in $ $1.383bPercentage drop 10.5 per centSource: ABS/RateCitylast_img