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Housing Finance, Australia, May 2018

Published 11/07/2018, 12:41 pm

Invest Housing FinanceSUMMARY OF FINDINGS

DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (trend) fell 0.7% in May 2018 compared with April 2018, while the seasonally adjusted series rose 0.5% in May 2018.

The total value of owner occupied housing commitments (trend) fell (down $33m, 0.2%) in May 2018. A fall was recorded in commitments for the construction of dwellings (down $35m, 1.8%) while a rise was recorded in commitments for the purchase of new dwellings (up $3m, 0.3%) with commitments for the purchase of established dwellings being flat. The seasonally adjusted series for the total value of owner occupied housing commitments rose 0.7% in May 2018.

The total value of investment housing commitments (trend) fell (down $205m, 1.9%) in May 2018 compared with April 2018. Falls were recorded in commitments for the purchase of dwellings by individuals for rent or resale (down $135m, 1.5%), commitments for the purchase of dwellings by others for rent or resale (down $50m, 5.1%) and commitments for the construction of dwellings for rent or resale (down $21m, 1.9%). The seasonally adjusted series for the total value of investment housing commitments fell 0.1% in May 2018.

Further detail can be found in Tables 11, 1 and 2 on the downloads tab of this release and in the PDF.

INVESTMENT HOUSING - TOTAL
Chart


Number of Owner Occupied Dwellings Financed

The number of owner occupied housing commitments (trend) fell 0.7% in May 2018, following a fall of 0.8% in April 2018. Falls were recorded in commitments for the purchase of established dwellings (down 246, 0.6%), commitments for the construction of dwellings (down 87, 1.5%) and commitments for the purchase of new dwellings (down 25, 0.9%). The seasonally adjusted series for the total number of owner occupied housing commitments rose 1.1% in May 2018.

Further detail can be found in Tables 1 and 2 on the downloads tab of this release and in the PDF. Chart

Number of Owner Occupied Dwellings Financed - State

Between April 2018 and May 2018, the number of owner occupied housing commitments (trend) fell in Victoria (down 116, 0.7%), Queensland (down 113, 1.1%), New South Wales (down 73, 0.4%), Western Australia (down 43, 0.9%), the Australian Capital Territory (down 21, 1.9%), South Australia (down 20, 0.6%) and the Northern Territory (down 3, 0.9%), while a rise was recorded in Tasmania (up 3, 0.3%).

The seasonally adjusted estimates rose in Victoria (up 532, 3.5%), New South Wales (up 210, 1.3%), Queensland (up 80, 0.8%), Tasmania (up 31, 3.1%) and South Australia (up 22, 0.6%), while falls were recorded in the Australian Capital Territory (down 93, 8.2%), the Northern Territory (down 9, 3.6%) and Western Australia (down 8, 0.2%).

Further detail can be found in Tables 5 and 6 on the downloads tab of this release and in the PDF.


First Home Buyer Commitments

In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments was unchanged from April 2018 to May 2018 at 17.6%. Between April 2018 and May 2018, the average loan size for first home buyers rose $1,800 to $344,600. The average loan size for all owner occupied housing commitments rose $1,500 to $400,100 for the same period.

Further detail can be found in Table 9a on the downloads tab of this release and in Table 9 of the PDF.


Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied housing commitments excluding refinancing (trend) fell 0.6% in May 2018, following a fall of 0.8% in April 2018. The seasonally adjusted series rose 1.8% in May 2018, after a fall of 1.2% in April 2018.

Further detail can be found in Tables 1 and 2 on the downloads tab of this release and in the PDF. Chart

PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The number of finance commitments for the construction of dwellings for owner occupation (trend) fell 1.5% in May 2018, following a fall of 1.7% in April 2018. The seasonally adjusted series rose 1.2% in May 2018, while April 2018 was flat.

Further detail can be found in Tables 1 and 2 on the downloads tab of this release and in the PDF. Chart

Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (trend) fell 0.9% in May 2018, following a fall of 0.9% in April 2018. The seasonally adjusted series rose 0.1% in May 2018, after a fall of 3.6% in April 2018.

Further detail can be found in Tables 1 and 2 on the downloads tab of this release and in the PDF. Chart

Purchase of established dwellings (including refinancing across lending institutions)

The number of finance commitments for the purchase of established dwellings for owner occupation (trend) fell 0.6% in May 2018, following a fall of 0.7% in April 2018. The seasonally adjusted series rose 1.2% in May 2018, after a fall of 0.9% in April 2018.

Further detail can be found in Tables 1 and 2 on the downloads tab of this release and in the PDF. Chart

Refinancing

The number of refinancing commitments for owner occupied housing (trend) fell 0.9% in May 2018, following a fall of 0.9% in April 2018. The seasonally adjusted series fell 0.2% in May 2018, following a fall of 0.3% in April 2018.

Further detail can be found in Tables 1 and 2 on the downloads tab of this release and in the PDF. Chart

TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of commitments for owner occupied dwellings financed by banks (trend) fell 0.8% in May 2018, following a fall of 0.9% in April 2018. The seasonally adjusted series rose 0.8% in May 2018, after a fall of 1.2% in April 2018.

Further detail can be found in Tables 3 and 4 on the downloads tab of this release and in the PDF. Chart

Non-banks

The number of commitments for owner occupied dwellings financed by non-banks (trend) rose 0.6% in May 2018, following a rise of 0.3% in April 2018. The seasonally adjusted series rose 4.5% in May 2018, following a rise of 2.3% in April 2018. The number of commitments for owner occupied dwellings financed by permanent building societies (trend) rose 5.7% in May 2018, following a rise of 1.4% in April 2018.

Further detail can be found in Tables 3 and 4 on the downloads tab of this release and in the PDF. Chart

HOUSING LOAN OUTSTANDINGS

At the end of May 2018, the value of outstanding housing loans financed by Authorised Deposit-taking Institutions (ADIs) was $1,667b, up $7b (0.4%) from the April 2018 closing balance. Owner occupied housing loan outstandings financed by ADIs rose $6b (0.5%) to $1,104b and investment housing loan outstandings financed by ADIs rose $0.7b (0.1%) to $563b.

Bank housing loan outstandings rose $6b (0.4%) during May 2018 to reach a closing balance of $1,631b. Owner occupied housing loan outstandings of banks rose $6b (0.5%) to $1,075b and investment housing loan outstandings of banks rose $0.7b (0.1%) to $555b.

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