Sydney’s speculator frenzy has reached truly gargantuan proportions, with today’s Lending Finance data for May, 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 May were 22.1% higher than May 2014. New South Wales investor loans were also up by 30.0% in rolling annual terms in the year to May 2015, well above the national average increase of 22.6%.
As at May 2015, investors accounted for an astonishing 59.4% 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 49.1% in May:
Putting the two charts together for New South Wales (Sydney) yields the following gorilla:
Let’s hope APRA’s investor loan caps begin to bite before the Sydney/Melbourne investor bubbles grows even bigger.
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