The total value of new housing loans fell 1.7 per cent in May to $28.8bn, according to data released on Monday by the Australian Bureau of Statistics.
The value of new investor loans fell 1.3 per cent in May to $10.7bn. Owner-occupier loans (excluding first home buyers) fell 1.6 per cent to $12.9bn, while first home buyer loans fell 2.9 per cent to $5.2bn.
But fund manager and private lender Capspace says demand overall remains strong, leaving investors vulnerable due to potential rate hikes should inflation remain above the central bank’s target band.
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