Just when you thought the speculator frenzy that has engulfed Sydney’s housing market couldn’t get any worse, today’s Lending Finance data for April, released by the ABS, has smashed all records, with both the value and proportion of mortgages going to New South Wales investors surging to another all time high.
As shown below, the value of investor loans in New South Wales (read Sydney) continues to rocket, with Melbourne – the second hottest market – also experiencing strong growth:
According to the ABS, investor finance commitments in New South Wales in April were 40% higher than April 2013. New South Wales investor loans were also up by 42% in rolling annual terms in the year to April 2014, well above the national average increase of 29%.
Further, as at April 2014, investors accounted for an astonishing 53.6% of total housing finance commitments (excluding refinancings) in New South Wales – a new record. Victoria’s (read Melbourne’s) share of investor mortgages also rose to 45.3%, which was also a record share for that state:
Putting the two charts together for New South Wales (Sydney) yields the following:
Bubble anyone?
