Property Investor lending soars into new builds
When the debate over the impact of removing negative gearing and the capital gains tax discount on investment properties kicked off after budget night in May, a narrative emerged that this would reduce the number of homes built by property investors. The federal Treasury estimated that the changes to the capital gains tax discount and The post Property Investor lending soars into new builds…
Recent discussions surrounding the removal of negative gearing and the capital gains tax discount for investment properties have raised concerns that this could reduce the number of homes built by property investors. The federal Treasury projected a 35,000 home reduction over a decade, while Qaive and Tulipwood Economics found a 22,700 home decrease over five years.
However, Westpac's forecasts suggested an increase in new homes built by investors, potentially by 45%. The Australian Bureau of Statistics' latest housing finance data, released last week, indicated a more optimistic outlook. Loans to investors for new home construction reached a quarterly record in the June quarter, with 8,468 loans approved.
On a 12-month rolling basis, new construction loans for investors also set a record high of 31,837. Mortgage flows to investors for completed new homes have also performed well, hitting a quarterly high since September 2025 and a 12-month rolling high since June 2022. While early data, these figures suggest a promising trend, potentially validating Westpac's forecasts and benefiting the nation if accurate.
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