Latest Lending Aggregates All About Property

The ABS released their data for April. The total value of owner occupied housing commitments excluding alterations and additions rose 1.3% in trend terms  whilst the value of total personal finance commitments rose 0.5%.

Total commercial finance commitments rose 2.4%. Fixed lending commitments rose 3.4%, while revolving credit commitments fell 0.4%. The trend series for the value of total lease finance commitments rose 1.6% in April 2015.

Lending-Aggregates-April-2015We continue to see strong investment lending with more than half of residential loans in April going to investors.

Property-Lending-Aggrates-April-2015The proportion of commercial lending aligned to investment property rose and this explains much of the rise in commercial lending overall. Investment property lending is relatively unproductive, and makes little contribution to economic growth.

Commercial-Lending-Aggregates-April-2015

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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