Australia's property market is showing a clear divergence, with new mortgage lending data highlighting significant state-by-state disparities. Nationally, loan approvals rose by a healthy 15% year-on-year in the March quarter, fueled by strong performances in NSW, Queensland, SA, and WA, according to Loan Market Group data. Investor lending surged in NSW and SA (up 32% and 50% respectively), while Queensland saw substantial owner-occupier growth, particularly in coastal regions. Median loan sizes also increased significantly in Queensland, WA and SA, indicating greater buyer competition.
However, Victoria is lagging behind, recording only a 3% increase in loan approvals. Melbourne is particularly affected, with investor lending in western suburbs plummeting 43%. Potential factors include affordability constraints, high stamp duty, policy uncertainty around rental regulations, and outwards migration to more affordable markets. While interest rate cuts are anticipated to stimulate demand, banking analysts highlight that the initial cuts haven't had the anticipated market impact. Mortgage brokers, facilitating over 75% of home loans, should closely monitor these regional trends and consider the impact on investment strategies.