Unity Jackson-Muir, Real estate reporter
First published 29 Oct 2026, 5:00am
Government tax reforms could be boosting new housing supply with new analysis revealing the biggest jump in the number of investor loans for newly built homes since records started.
The ABS Lending Indicators data show a record breaking surge of 10,923 investor loans for new homes during the June quarter, a rise of 21.7 per cent from the same period the year before.
Investor loans for existing homes still make up a larger share of investment lending but have fallen by 14.8 per cent since the March quarter.
The fall in total investor lending marks the sharpest quarterly fall since March 2020 and is equivalent to around 7,000 fewer loans compared to the first quarter of 2026.
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Source: Primara Research / HomeLoanRates.com.au analysis of ABS Lending Indicators, June 2026
Investor loans for new homes now make up 20.8 per cent of all investment loans in the ABS dataset, with four in five loans taken out for construction instead of purchases of existing stock.
Peter Drennan is head of research for Primara Research and said that investor demand is one of the only areas of growth across all new loans despite a recent downturn in mortgage lending.
“Total new housing lending fell 5.4 per cent in the June quarter to 134,225, the second straight quarterly fall,” Mr Drennan said.
“Strip out investor loans for new homes, and the rest of the market fell 6.2 per cent.
“That’s one of the only categories still growing, in the same quarter that brought the RBA’s third rate rise this year,” he said.
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The surge in investor loans for new homes indicates government tax reforms might be boosting new housing supply. Picture: Getty Images
The spike in investor loans for new homes started around mid last year but indicates that the government’s tax reforms are having the intended effect of boosting new housing supply.
Prime Minister Anthony Albanese, Treasurer Jim Chalmers and Housing Minister Clare O’Neil released a joint statement when the Budget was announced outlining the aim of the reforms.
“Building more homes is the main game when it comes to addressing Australia’s housing challenge,” the statement said.
“That’s why new builds are exempt from the tax changes, to steer investment toward increasing supply,” it said.
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Treasurer Jim Chalmers said in May that the tax reforms are meant to support investment in productive assets, including new housing supply. Picture: NewsWire / Martin Ollman
Mr Drennan led the research on behalf of HomeLoanRates.com.au and said the surge in new home investment coincides with the tax reforms and lending changes that limit financial risk.
“The timing lines up with two policy changes that both favour new builds,” Mr Drennan said.
“Existing properties bought now face the lending limit and are set to lose negative gearing from mid-2027.
“Investor lending has moved toward new supply within two quarters of both changes landing,” he said with reference to a spike in the last six months,” he said.
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