Investment loans have risen to near record levels, and Real Estate Institute of Australia (REIA) president, Adrian Kelly, said it’s positive news to see mum and dad investors returning to the market.

New property investor loan commitments rose by 1.1 per cent in October 2021 (seasonally adjusted), according to the latest Australian Bureau of Statistics (ABS) report released on 2 December.

The value of new loan commitments for investor housing, according to the ABS, has been on the rise for 12 consecutive months hitting a high of $9.7 billion in October.

This is the highest level for new loan commitments since the previous all-time highest record in April 2015.

“The housing market has seen significant growth over the past year and it was a sign this sector provided strong returns and future growth in many states and territories,” Mr Kelly said.

For the ninth consecutive month, new loan commitments to first home buyers fell, creating further concerns of housing affordability for the group, he said.

Nationally, only 20 per cent of all new loan commitments in October were accounted for by first home buyers.

ACT first home buyers fell by 8.2 per cent, dropping to 29 per cent of all loan commitments for owner-occupied housing.

“While the investor loan commitments have grown 90 per cent over the past year, the number of investor loans only accounted for 33 per cent of all new loan commitments for housing in October,” Mr Kelly said.

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