Housing Finance Approvals Hit New Highs

With low interest rates, decreasing affordability and the heat in the Australian housing market well documented, it should come as no surprise that the value of new loan commitments for housing rose for the second consecutive month.

According to the April 2021 Lending to Households and Business figures released today by the Australian Bureau of Statistics (ABS), the consecutive rise in results comes after a brief fall in February following eight consecutive months of growth according to the Real Estate Institute of Australia (REIA).

“The seasonally adjusted value of new loan commitments for owner occupier housing increased by 4.3 per cent in April and was up 68.2% for the twelve months, setting a new record,” said REIA President, Adrian Kelly.

Further Mr Kelly said the value of new loan commitments, for the purchase of existing dwellings, rose 9.2%.

“Rises in the value of new loan commitments for owner occupier housing were seen in all states and territories except Western Australia, with New South Wales and Victoria having the largest increases of 8.6% and 8.4% respectively,” added Mr Kelly.

On the investment side, April saw an increase for the eleventh consecutive month with “the value of loan commitments for investor housing increasing by 2.1% for the month and 63% for the year.

Mr Kelly said the number of owner occupier first home buyer loan commitments fell for the third consecutive month. The April fall of 1.9 per cent is still 59.6 per cent higher than twelve months earlier. Owner occupier first home buyer loan commitments accounted for 32.9 per cent of all owner occupier commitments excluding refinancing, down from January’s 36.5 per cent when lending for first home buyers was at its highest since May 2009.

A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.

The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.

The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.

GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.

“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.

The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.

Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.

According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.

“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”

The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.

Hunt said consumer brands offered a level of tangibility that many investors found appealing.

“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”

The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.

With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.

Housing Finance Approvals Hit New Highs

According to the REIA, the consecutive rise in approvals comes after a brief dip in February.

With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.