Sydney investor bubble reaches monsterous proportions
Sydney’s speculator frenzy has grown to truly monstrous proportions, with today’s Lending Finance data for June, 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 June were 37.5% higher than June 2014. New South Wales investor loans were also up by 32.5% in rolling annual terms in the year to June 2015, well above the national average increase of 25.1%.
As at June 2015, investors accounted for an astonishing 60.1% 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 50.3% in June:
Putting the two charts together for New South Wales (Sydney) yields the following gorilla:
Whereas Victoria (Melbourne) is not much better:
Let’s hope APRA’s and the banks’ investor loan caps begin to bite soon before the Sydney/Melbourne investor bubbles grows even bigger.
