March has seen lending for housing investments in WA surge to a whopping $462 million continuing its five-year high as rising property prices and rents entice opportunists back into the market.
WA property investment has doubled from a year ago with a 12% jump month to month mirroring the recent results in a national surge in lending to property investors which climbed to $7.8 billion in March – up 50% from a year ago.
Yesterday the Reserve Bank Australia upgraded its forecast for national GDP growth to 4.75% in 2021 followed by 3.5% in 2022.
“Given the environment of rising housing prices and low interest rates, the Bank will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained,” said RBA Governor Phillip Lowe.
There has been a flurry of market activity over the past nine months due to the combination of historically low interest rates and Federal and State government housing construction grants. Until recently new lending had been primarily to owner-occupiers and first home buyers in particular, however March data now indicates that investors are beginning to dive back in to the market .
This is a summary of the article ‘Market Safe As Houses’ – RBA warns it’s watching sector as Perth investors dive back in’ by Josh Zimmerman |The West Australian | Wednesday 5th May 2021. (Copyright © The West Australian 2021)