Australian property investors flee as lending collapses

Investor lending collapses at record pace

New lending to property investors fell at its fastest pace on record through the three months to September, as landlords adjust to higher taxes and rising interest rates.

The scale of the investor exodus

The value of new investor loans plunged by nearly a third in the September quarter, the biggest drop in official records stretching back to two thousand two.

CBA mortgage arrears hit twelve-year high

Commonwealth Bank reported that the share of borrowers ninety days or more behind on repayments lifted from zero point seventy-three percent to zero point eight percent of total lending.

Last time arrears were this high

The last time Commonwealth Bank's arrears rates were higher was in two thousand fourteen, according to previous trading updates.

Tax changes and price expectations drive exodus

Mish Tan, head of finance statistics at the Australian Bureau of Statistics, said investor activity is influenced by tax changes and expectations of lower house prices, beyond rising borrowing costs.

“suggests that investor activity is being influenced by factors beyond increasing borrowing costs, including the potential impacts of tax changes and expectations of lower house prices”

Chalmers defends tax reforms as beneficial

Treasurer Jim Chalmers said the government's tax reforms will help first home buyers compete less with investors for housing stock, and benefits will play out over years, not months.

“Because of our reforms, first home buyers will have to compete less with established investors for limited existing housing stock”

Coalition promises to repeal investor tax changes

Andrew Bragg, shadow housing minister, said Labor's higher housing taxes are discouraging investment when Australia desperately needs more homes, and the taxes should be repealed.

“Labor's higher housing taxes are discouraging investment when Australia desperately needs more homes”