The average size of owner-occupier home loans in Australia has reached an all-time high, driven by rising property prices and sustained demand.

According to the latest Australian Bureau of Statistics (ABS) data, the average loan has climbed to $666,000 following a $25,000 increase in the final quarter of 2024, marking a 4% year-on-year rise.

Investor loans have also hit a record high, now averaging $674,000 after a similar quarterly increase.

First-home buyers are becoming more active, with the number of new owner-occupier first-home buyer loans rising 1.3% during the quarter.

ABS head of finance statistics, Dr Mish Tan, reported 48,876 new investment loans were approved in the December quarter, highlighting strong investor confidence.

Western Australia recorded the highest growth in investor loans, up 55.9% over the past year, followed by Queensland (40.9%) and South Australia (40.7%).

The largest increases in investment loan values were seen in Queensland (+19.6%), Victoria (+12.3%), and New South Wales (+10.6%), reflecting heightened investor activity in key property markets.