The graph below illustrates the moving 3 month trend for the amount of lending finance for investment properties in New South Wales, Queensland and Victoria in relation to economic impacts.

New South Wales has the highest value of lending finance for investment compared to the other two states.  Lending finance reached a high in all states in October 2003 a month before a 0.25% interest rate rise in November 2003.  Lending finance in Queensland and Victoria has stayed fairly stable since January 2004 whilst New South Wales has experienced more obvious fluctuations.

The cash rate increase to 5.5% in April 2005 looks to have had no major impacts on lending finance in any state.  However, the latest increases in 2006 have had a negative impact on the investment market in NSW.