Investors struggle as first home buyers catch up

Christina Leung

RBNZ data shows investors borrowed just $949 million last month, compared to $1.06 billion in December 2017. The figures are the lowest investor borrowing numbers since January 2018. In contrast, investors borrowed over $1.37 billion in December 2016. 

Overall figures show the market is holding up, with support from first home buyers a notable positive. FHBs borrowed $924 million, coming close to $949 million given to investors. In December 2017 FHBs borrowed just $767 million.

Historically, FHBs have lagged way behind investors, but they are beginning to close the gap. The December numbers follow on from a strong November in which FHBs borrowed $1.02 billion and investors $1.09 billion. 

Owner-occupiers take up the biggest slice of the market, but only posted marginal growth. Movers borrowed $3.4 billion in December, up from $3.2 billion in December 2017.