Economic briefing note on housing finance in July 2016

July 2016

Release date: 9 September 2016
Next release: 11 October 2016

Victorian monthly loan approvals to owner-occupiers decreased by 1.3 per cent to 15,348 in July 2016. Nationally loan approvals to owner-occupiers decreased by 4.2 per cent to 55,010.

In the month to July 2016, the number of loans to owner-occupiers for new dwellings increased in Tasmania (up 22.0 per cent) but decreased in South Australia (down 18.9 per cent), Victoria (down 18.2 per cent), Western Australia (down 11.9 per cent), Queensland (down 10.9 per cent) and New South Wales (down 10.9 per cent).

In July 2016, Victoria's loans to owner-occupiers for new dwellings contributed 29.3 per cent (2346) to the national total (7997). For the same period, Victoria contributed 27.2 per cent (12,500) of loan approvals for owner-occupied established dwellings to the national total (45,978).

Nationally, the value of lending for new and established housing decreased by 2.2 per cent in July 2016. This reflected a decrease in lending to owner-occupiers (down 4.5 per cent) and an increase in lending to investors (up 0.5 per cent).

Number of housing loans

Number of housing loans NSW VIC QLD SA WA TAS AUST
Number of loans to owner-occupiers (seasonally adjusted) 16,828 15,348 10,776 4012 6261 1016 55,010
Change in the month to July 2016 (%) -2.2 -1.3 -4.9 -0.5 1.2 1.4 -4.2
Annual change to July 2016 (%) -0.1 9.6 2.1 11.0 -8.4 4.4 1.8
Number of loans to owner-occupiers new dwellings (original) 2116 2346 1466 499 1193 133 7997
Change in the month to July 2016 (%) -10.9 -18.2 -10.9 -18.9 -11.9 22.0 -13.3
Annual change to July 2016 (%) -1.4 -1.1 -10.0 -2.3 -29.0 24.3 -7.5
Number of loans to owner-occupiers established dwellings (original) 14,308 12,500 8958 3368 4948 854 45,978
Change in the month to July 2016 (%) -7.4 -9.0 -9.4 -9.2 -5.1 -0.7 -8.2
Annual change to July 2016 (%) -7.5 1.2 -4.0 2.7 -12.0 -1.5 -4.2

Proportion of value of housing loans (Australia)

This chart shows the proportion of value of housing loans by owners and by investors for Australia between July 2006 and July 2016.  In July 2006, 61 per cent of the value of housing loans was made to owners, with 39 per cent made to investors. This proportion remained relatively stable until February 2009, when there was a spike in the proportion of housing loans to owners (up to 65 per cent) with only 35 percent of the value of housing loans being made to investors in February 2009. Since February 2009, the value of housing loans made to owners has declined, with the value of housing loans made to investors surpassing the value of housing loans made to owners in July 2014. The proportion of the value of housing loans made to investors reached a high of 55 per cent in May 2015. Since May 2015, the value of housing loans made to investors has declined, with the value of housing loans made to owners surpassing the value of housing loans made to investors in August 2015. In July 2016, 52 per cent of the value of housing loans was made to owners, with 48 per cent made to investors.

Date Owners (%) Investors (%)
July 2006 61 39
February 2009 65 35
May 2015 n/a 55
July 2016 52 48

Value of non-refinancing housing loans to owner-occupiers by type (Australia)

This chart shows the value of non-refinancing housing loans to owner occupiers for new dwellings and established dwellings in Australia between July 2006 and July 2016.  The value of non-refinancing housing loans for established dwellings in the month to July 2006 was $8.5 billion. Between July 2006 and June 2007 there was an upwards trend in the value of non-refinancing  loans for established dwellings, peaking at a value of $9.9 billion in June 2007. Between June 2007 and August 2008 there was a downwards trend in the value of non-refinancing  loans for established dwellings, down to $6.8 billion in August 2008. Between August 2008 and April 2009 there was an upwards trend in the value of non-refinancing  loans for established dwellings, peaking at a value of $10.1 billion in April 2009. Between April 2009 and February 2012 there was a downwards trend in the value of non-refinancing  loans for established dwellings, down to $7.1 billion in March 2012. Between March 2012 and September 2015 there was an upwards trend in the value of non-refinancing  loans for established dwellings, peaking at a value of $11.5 billion in September 2015. Since September 2015 the value of non-refinancing  loans for established dwellings has declined and sits at to $10.2 billion in July 2016.  The value of non-refinancing housing loans for new dwellings in the month to July 2006 was $1.9 billion. Between July 2006 and June 2007 there was an upwards trend in the value of non-refinancing  loans for new dwellings, peaking at a value of $2.1 billion in June 2007. Between June 2007 and August 2008 there was a downwards trend in the value of non-refinancing  loans for new dwellings, down to $1.4 billion in August 2008. Between August 2008 and October 2009 there was an upwards trend in the value of non-refinancing  loans for new dwellings, peaking at a value of $2.7 billion in October 2009. Between October 2009 and March 2011 there was a downwards trend in the value of non-refinancing loans for new dwellings, down to $1.9 billion in March 2011. Between March 2011 and December 2015 there was an upwards trend in the value of non-refinancing  loans for new dwellings, reaching $2.9 billion in December 2015. Since December 2015 the value of non-refinancing  loans for new dwellings has remained relatively steady and sits at $2.8 billion in July 2016.

Date New dwellings ($ billion) Established dwellings ($ billion)
July 2006 $1.9 $8.5
June 2007 $2.1 $9.9
August 2008 $1.4 $6.8
April 2009 n/a $10.1
October 2009 $2.7 n/a
March 2011 $1.9 n/a
March 2012 n/a $7.1
September 2015 n/a $11.5
December 2015 $2.9 n/a
July 2016 $2.8 $10.2

Source: Australian Bureau of Statistics (ABS), cat. no. 5609.0 – Housing finance, Australia

Contact

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Page last updated: 23 September 2016