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The latest lending figures from the Australian Bureau of Statistics showed a shift in the buyer profile of borrowers, with activity from first-home buyers declining, according to CoreLogic.
The total value of finance increased by 14.9% over the three months to April, with investors posting the fastest increase in the value of finance at 27.7%. Owner-occupiers, excluding first-home buyers, also clocked a 13.8% gain over the month while the first-home buyer segment registered a modest gain of 5.5%.
Despite investors recording the highest growth in the period, owner-occupiers who were not first-home buyers maintained the highest share of housing finance by value at 52.5%, higher than the decade average of 49.5%.
The share of investors, on the other hand, has risen to 25.9%. However, this was below the decade average of 35.5%.
Investor activity has been most concentrated in NSW, where 30.6% of the housing finance was from the segment. Queensland also reported an increase in the share of investor share to 25.7%, the highest since 2018.
“The recent change in the trajectory of first home buyer and investor mortgage share reflects greater challenges for first home buyers. Affordability is becoming strained as national dwelling values have risen 10.1% in the year-to-date alone,” said Eliza Owen, head of residential research at CoreLogic.
In fact, first-home buyers comprised 21.5% of total borrowings for the purchase of property. This represents the 5th consecutive decline in first-home buyer share in the overall housing finance. Despite this, however, the overall share of first-home buyers remains well above the decade average of 15.7%.
“The decline in first-home buyer activity also reflects a tapering in government assistance. The HomeBuilder scheme, which was popular for its compatibility with first-home owner grants and stamp duty discounts, ended in March of 2021. This has likely contributed to the decline in demand,” Owen said.
