Economic briefing note on housing finance in September 2016

September 2016

Release date: 10 November 2016
Next release: 9 December 2016

Victorian monthly loan approvals to owner-occupiers increased by 3.9 per cent to 14,744 in September 2016. Nationally, loan approvals to owner-occupiers increased by 1.6 per cent to 54,449.

In the month to September 2016, the number of loans to owner-occupiers for new dwellings increased in Queensland (up 6.5 per cent) and Tasmania (up 0.8 per cent) but decreased in Western Australia (down 13.1 per cent), South Australia (down 10.6 per cent), Victoria (down 5.5 per cent) and New South Wales (down 1.5 per cent).

In September 2016, Victoria's loans to owner-occupiers for new dwellings contributed 28.7 per cent (2433) to the national total (8467). For the same period, Victoria contributed 26.5 percent (12,575) of loan approvals for owner-occupied established dwellings to the national total (47,400).

Nationally, the value of lending for new and established housing increased by 1.8 per cent in September 2016. This reflected a decrease in lending to owner-occupiers (down 0.8 per cent) and an increase in lending to investors (up 4.6 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) 16,737 14,744 10,9933995 60631017 54,449
Change in the month to August 2016 (%) 2.33.92.82.3-3.03.91.6
Annual change to August 2016 (%) -9.2-2.15.55.4-10.917.0-3.7
Number of loans to owner-occupiers new dwellings (original) 2133 2433 1873530 1157 1328467
Change in the month to August 2016 (%) -1.5-5.56.5-10.6-13.10.8-3.8
Annual change to August 2016 (%) -11.2-2.57.84.7 -17.226.9-4.8
Number of loans to owner-occupiers established dwellings (original) 14,968 12,575 9577 34804824 89147,400
Change in the month to August 2016 (%) 1.31.11.71.3-5.23.20.8
Annual change to August 2016 (%) -10.7-2.75.34.9-8.112.2-3.9

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 September 2006 and September 2016.  In September 2006, 60 per cent of the value of housing loans was made to owners, with 40 per cent made to investors. This proportion remained relatively stable until March 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 March 2009. Since March 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 relative to owner-occupiers, with the value of housing loans made to owners surpassing the value of housing loans made to investors in August 2015. In September 2016, 51 per cent of the value of housing loans was made to owners, with 49 per cent made to investors.

Date Owners (%) Investors (%)
September 2006 6040
March 2009 6535
May 2015 4555
September 2016 5149

Value of housing loans by owners and investors (Australia)

This chart shows the value of non-refinancing housing loans to owner occupiers for new dwellings and established dwellings in Australia between September 2006 and September 2016.  The value of non-refinancing housing loans for established dwellings in the month to September 2006 was $7.9 billion. Between September 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 September 2016.  The value of non-refinancing housing loans for new dwellings in the month to September 2006 was $1.7 billion. Between September 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 had a relatively flat trend and sits at $2.8 billion in September 2016.

Date range New dwellings ($ billion) Established dwellings ($ billion)
September 2006 1.77.9
June 2007 2.19.9
August 2008 1.46.8
April 2009 n/a10.1
October 2009 2.7n/a
March 2011 1.9n/a
February 2012 n/a7.1
September 2015 n/a11.5
December 2015 2.9n/a
September 2016 2.810.2

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

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Page last updated: 9 December 2016