Ignore the doomsdayers – property investing in Australia is far from broken
Summary
Property investing in Australia has slowed down but is not broken, according to recent reports. Commonwealth Bank made a large profit due to strong mortgage demand, despite fewer new loan applications from property investors after government tax changes and interest rate hikes.Key Facts
- Commonwealth Bank reported an $11 billion profit, largely from mortgage lending.
- Property investors took out $45 billion in loans in the second half of 2025 and $37 billion in early 2026.
- Interest rates were raised three times by the Reserve Bank, and the government changed tax rules on property, reducing some investment benefits.
- Since the new tax changes, investor loan applications dropped 28%, while loans for home buyers fell 9%.
- The drop in investor loans aligns with government goals to cool the property market and help first-time buyers.
- Commonwealth Bank says the worst part of the loan decline was over by June 2026, with signs of improvement expected in 2027.
- Despite the slowdown, thousands of Australians still buy investment properties, and rents are increasing but slower than inflation.
- Experts say rising interest rates and economic factors affect the housing market more than tax changes alone.
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