The graph below illustrates the amount of lending finance for investment properties in New South Wales, Queensland and Victoria, according to the Australian Bureau of Statistics, in relation to interest rate increases.

New South Wales has the highest value of lending finance compared to the other two states.  Lending finance in New South Wales peaked in October 2003 with approximately $3.1 billion and generally has continued to decline.  In comparison Queensland and Victoria peaked in May 2007 ($1.4 billion and $1.3 billion respectively).  This shows the increasing demand in the Queensland and Victorian markets compared to New South Wales, despite last year’s interest rate increases and market speculation surrounding additional rises later in the year.