Near record housing finance levels

Today’s Australian Bureau of Statistics data has revealed Queensland’s established investor housing finance commitments are approaching levels not seen since the market hit its peak in June 2007.

Mr Pitt said the Palaszczuk Government is working with the property sector to encourage investors to choose Queensland as their preferred location for property purchases.

“Housing finance to purchase existing dwellings in Queensland hit $4.7 billion in the three months to June 2015, which is up from $4.1 billion in the same period the year before,” Mr Pitt said.

“The ABS figures show lending commitments continuing to grow.

“In recent years, we have has seen steady growth in investor finance since early 2013, matched by moderate housing price increases.”

Queensland investor housing finance peaked at $5 billion in mid-2007.

Mr Pitt said with Brisbane’s rental yields more attractive than other major capitals – particularly for apartments, units and townhouses – further investor interest was likely to switch towards Queensland.

“This positive result matches the Palaszczuk Government’s responsible economic agenda to support growth and create opportunities,” Mr Pitt said.

“Investors are responding by committing to the Queensland housing sector.

“The steady growth in housing finance reflects ongoing confidence in the property outlook for Queensland.

“Low interest rates are continuing to encourage investment in Queensland’s housing markets, while Brisbane’s strong rental yields are another attraction for investors.

“After three years of negativity under the LNP, it’s clear optimism is being restored by the Palaszczuk Government’s responsible measured Budget approach.

“The ABS also revealed last week that job prospects in Queensland are improving, with an additional 3,600 jobs created last month. In trend terms 20,400 jobs have been created in Queensland since February, that’s more than 130 jobs each day on average since the Palaszczuk Government took office.”

Media contact: Martin Philip 0427 919 548