Australian property investors sharply reduced new loan commitments in the September quarter, with record declines in investor lending accompanying a broader fall in housing finance, the Australian Bureau of Statistics (ABS) said.
The seasonally adjusted number of new investor commitments dropped 30.6% to 35,301 in the three months to Sept. 30. Their value fell 32.3% to A$24.705 billion. The ABS said each measure recorded its steepest quarterly decline, extending a run of decreases to three consecutive quarters.
The slowdown also reached other borrowers, though less sharply. Owner-occupier commitments declined 5.3% by number to 76,578, while first-home-buyer commitments fell 8.6% to 26,415. Across all borrowers, the number of new dwelling loan commitments, which exclude refinancing, decreased 15.0% to 111,878. Their value fell 15.5% to A$81.157 billion.
Dr. Mish Tan, head of finance statistics at the ABS, said investor activity may reflect tax changes and expectations of lower house prices, as well as borrowing costs. The bureau did not identify any one factor as the cause of the decline.
The government plans to limit negative gearing for residential property to new builds from July 1, 2027. Properties held before the policy announcement on May 12, 2026, will be exempt. The Australian Treasury says the changes are intended to help first-home buyers compete for established homes and direct investment toward new housing supply.
Separately, Commonwealth Bank of Australia (CBA) said the share of its home loans at least 90 days overdue rose seven basis points to 0.80%, from 0.73%, in the quarter. The bank cited higher inflation and interest rates as pressures on customers. It also said the reported rate reflected the time taken to resolve late-stage collection cases after earlier pauses in that process. CBA’s consumer-arrears data include New Zealand; the ABS figures do not show that the decline in new commitments caused the rise in CBA arrears.
After the September quarter ended, the Reserve Bank of Australia (RBA) raised its cash-rate target by 25 basis points to 4.85%, effective Nov. 4. The RBA’s next rate update is scheduled for Dec. 8, and the ABS plans to publish its next lending indicators on Feb. 10, 2027.
