Australia’s commercial property loan book swelled to 10-year high in Q3

On November 12, 2025, the Australian Bureau of Statistics (ABS) released their most recent figures on business loans for property purchase and construction, marking a sustained growth for commercial property financing.

Reaching a total of $36.6-billion worth of loan takeouts, this year’s September quarter saw the largest expansion in financing commitments since the bureau began publishing the data in 2015.

Key stats you need to know

• Australia’s total loan book expanded by $36.6 billion in the September quarter, the highest in 10 years.

• Loan commitments for property purchases now amount to 24.578, swelling by 7% since June 2025.

• Expansion rate for construction loans cools down in Q3 with new loans amounting to 12 billion, down by 600 million since the June quarter.

Despite a consistent increase in commercial financing toward property purchase, the year opened with a net contraction in country-wide commercial property loan book following an almost 30% decline in construction loans in the March quarter.

However, total loan books have since swelled by 23.7% in the 2nd quarter and another 2.7% in September. According to the most recent figures from ABS, total new loans funded for property purchase and construction has now soared to $36.6 billion, marking a $970-million increase since the June quarter. 

Property purchases mainly drove the expansion, representing $24.578 billion worth of new loans and a 7% quarterly growth. Meanwhile, new construction loan commitments dipped by 5%, following the 65% growth in the June quarter. 

“We’re seeing commercial property lending hit levels not recorded since the ABS began tracking this data a decade ago,” said Michael Johnson, Director at Agile Market Intelligence.

 “It’s a strong reflection of both post-pandemic recovery and the resilience of Australia’s property-driven business sector.”

Source: Australian Bureau of Statistics lending indicators (September Quarter 2025)

About the research

Statistics in this article were sourced from the Australian Bureau of Statistics’ quarterly lending indicators (September 2025). The dataset covers business finance loans including seasonally-adjusted value of new loan commitments by purpose.

Agile Market Intelligence also conducts Broker Pulse, a monthly survey of residential and commercial mortgage lenders. It is a community-driven knowledge base of lender performance that offers transparency to the market by surfacing these collective insights from the broker community. This empowers brokers to make informed decisions and enables lenders to benchmark and improve performance.

Participating brokers receive access to a bird’s-eye view of the lender benchmarking data each month. To sign up or for more information visit www.brokerpulse.com.au.