PHOTO: Slowdown in credit growth

The slowdown in credit growth continued after the conclusion of the federal election, with housing credit growing by only 3.7% in the year to May — the slowest annual growth rate recorded since 1976, figures from the Reserve Bank of Australia show.

Property financing for investors grew by 0.5%, hitting an all-time low. The growth in investor loans remained flat for the fifth consecutive month.

Owner-occupier financing growth also slowed in the month to 0.3%, while in annual terms, it registered a 5.3% increase, the weakest since June 2015.

Experts believe that the housing downturn and the tight lending rules have dampened the interest of many property investors, causing them to put their purchase plans on the backburner.