Queensland’s Housing Investment Surges by 6.8% in July 2023

In a promising development for Queensland’s property market, new data from the Australian Bureau of Statistics (ABS) reveals that investor housing loan commitments in the state saw a substantial rise of 6.8 percent, reaching $1.9 billion in July 2023.

This significant increase in investor housing loan commitments comes as a boost to the state’s real estate sector. Mish Tan, ABS Head of Finance Statistics, commented on the trend, saying, “The value of new housing investment loans in Queensland rose by an impressive 31 percent since February 2023, showing a robust and growing interest in property investment in the Sunshine State. In contrast, other states and territories experienced more mixed results.”

The ABS data also shed light on the broader housing market in Australia. While Queensland led with its remarkable 6.8% increase, nationally, new owner-occupier loan commitments (excluding refinancing) decreased by 1.9 percent to $15.6 billion in July. The value of new investor loan commitments saw only a marginal decline of 0.1 percent, totaling $8.6 billion.

Furthermore, owner-occupier housing loan refinancing between lenders surged by 4.9 percent, reaching a new record high of $14.6 billion in July. Anecdotal feedback suggests that this increase may be partly attributed to a portion of refinancing applications lodged before lenders ended attractive cashback offers on June 30.

In the personal finance sector, the data also showed positive signs. The value of new loan commitments for total fixed-term personal finance increased by 4.7 percent, amounting to $2.3 billion. This growth was driven by a substantial 42.1 percent ($93 million) rise in lending for personal investment. Additionally, lending for travel and holidays surged by 12.3 percent ($6 million) to the highest level recorded since August 2018.

This data highlights Queensland’s resilience and attractiveness as a destination for property investment. It also provides insights into the evolving financial landscape, offering valuable information for investors, policymakers, and those interested in the real estate market.