Owner-occupier lending excluding first-time buyers was down 1.6 per cent, and investor loans fell 1.3 per cent.
Yet over the past 12 months, the value of new commitments was up 18 per cent.
Loans to investors grew faster than lending to owner-occupiers in the year to May. (Diego Fedele/AAP PHOTOS)
Australian Bureau of Statistics head of finance statistics Fiona Cotsell said loans to investors had been growing faster than lending to owner-occupiers in the year to May.
Investor lending had been moving higher in most states and territories, with the biggest rises in NSW, Queensland and Western Australia.
"In May, the value of new loans to investors in Queensland reached an all-time high of $2.4 billion, exceeding Victoria for the third consecutive month," Ms Cotsell said.
"This is mainly due to investors taking out larger loans in the sunshine state compared to this time last year."
The average loan size for an investor in Queensland rose 14.3 per cent in the 12 months to May, which compared to the 3.2 per cent fall in Victoria over the same period.
Oxford Economics Australia senior economist Maree Kilroy said the regional divide in property market performance was still playing out, with the Perth "running hot" while Melbourne's market stayed subdued.
"At the national level, we expect price momentum to temporarily fade in the back half of 2024," the economist said.
Yet interest rate cuts, likely in early 2025, along with ongoing housing shortages, would trigger an acceleration in home prices from then, Ms Kilroy said.
"However, housing affordability will place a limit of on gains."
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