Sydney’s speculator frenzy has reached truly monsterous proportions, with today’s Lending Finance data for April, released by the ABS, once again obliterating all records, with both the value and proportion of mortgages going to New South Wales investors surging to another all time high.
As shown below, the value of investor loans in New South Wales (read Sydney) continues to rocket, with Victoria (read Melbourne) – the second hottest market – also experiencing strong growth:
According to the ABS, investor finance commitments in New South Wales in April were 32.8% higher than April 2014. New South Wales investor loans were also up by 30.9% in rolling annual terms in the year to April 2015, well above the national average increase of 23.0%.
As at April 2015, investors accounted for an astonishing 59.0% of total housing finance commitments (excluding refinancings) in New South Wales (Sydney) – a new record. Victoria’s (read Melbourne’s) share of investor mortgages also hit a record high 48.7% in April:
Putting the two charts together for New South Wales (Sydney) yields the following monster:
RBA and APRA what have you done?