The steady reduction in loan deferral numbers provides further evidence of the improvement in the economy and property markets, says the Real Estate Institute of Australia.

Australian Banking Association figures show the number of deferred loans has fallen below 300,000, a reduction of nearly 70% from the peak of the pandemic when more than 900,000 loans were deferred.

REIA president Adrian Kelly says the data is positive news for property markets as it signals the minimisation of forecasted financial problems. “This is good news for those living in investment properties as it provides increased security to tenants,” he says. “It also means catastrophic forecasts for Australia’s housing market made at the start of the pandemic are simply not coming to fruition.”

Kelly says Australian Prudential Regulation Authority data shows the overall levels of household saving in Australia increased from March through to October.