New home loans in Australia fell 5.2% QoQ in the three months to June, the
largest quarterly decline since end-2022. Investor lending fell over 10% while
owner-occupier loans dropped 1.9%. The fall aligns with major banks' reports of
sharply lower mortgage applications. Reduced tax incentives for investors and
continued house-price declines are prompting buyers to wait for a market bottom,
suggesting housing demand may remain weak. The concurrent drop in prices and
lending indicates Albanese's recent tax reforms to curb an unaffordable housing
market have begun to take effect.
