Economic briefing note on housing finance in June 2016

June 2016

Release date: 10 August 2016
Next release: 9 September 2016

Victorian monthly loan approvals to owner-occupiers increased by 0.5 per cent to 15,742 in June 2016. Nationally loan approvals to owner-occupiers increased by 1.2 per cent to 57,609.

In the month to June 2016, the number of loans to owner-occupiers for new dwellings increased in South Australia (up 9.0 per cent), Victoria (up 6.0 per cent), Queensland (up 2.0 per cent) and New South Wales (up 0.5 per cent) but decreased in Tasmania (down 31.9 per cent) and Western Australia (down 7.1 per cent).

In June 2016, Victoria's loans to owner-occupiers for new dwellings contributed 31.1 per cent (2869) to the national total (9222). For the same period, Victoria contributed 27.4 per cent (13,739) of loan approvals for owner-occupied established dwellings to the national total (50,074).

Nationally, the value of lending for new and established housing increased by 2.8 per cent in June 2016. This reflected an increase in lending to owner-occupiers (up 2.5 per cent) and an increase in lending to investors (up 3.2 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) 17,291 15,742 11,327 4038 6195 1000 57,609
Change in the month to June 2016 (%) -1.3 0.5 2.4 -0.4 -3.0 1.2 1.2
Annual change to June 2016 (%) 5.1 12.4 7.5 11.4 -10.7 9.6 6.7
Number of loans to owner-occupiers new dwellings (original) 2375 2869 1646 615 1354 109 9222
Change in the month to June 2016 (%) 0.5 6.0 2.0 9.0 -7.1 -31.9 1.0
Annual change to June 2016 (%) 10.8 19.1 4.3 0.5 -20.7 -3.5 4.5
Number of loans to owner-occupiers established dwellings (original) 15,454 13,739 9889 3708 5215 860 50,074
Change in the month to June 2016 (%) -5.7 -3.1 0.8 -1.9 -3.9 -5.7 -3.3
Annual change to June 2016 (%) 3.1 10.4 7.4 13.5 -7.5 8.3 5.4

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 June 2006 and June 2016. In June 2006, 58 per cent of the value of housing loans was made to owners, with 42 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 54 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 July 2015. In June 2016, 54 per cent of the value of housing loans was made to owners, with 46 per cent made to investors.

Date Owners (%) Investors (%)
June 2006 50 n/a
March 2009 65 35
May 2015 n/a 54
June 2016 54 46

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 June 2006 and June 2016. The value of non-refinancing housing loans for established dwellings in the month to June 2006 was $8.1 billion. Between June 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 $7.2 billion in February 2012. Between February 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 $11.0 billion in June 2016. The value of non-refinancing housing loans for new dwellings in the month to June 2006 was $1.8 billion. Between June 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 $2.9 billion in June 2016.

Date range New dwellings ($ billion) Established dwellings ($ billion)
July 2006 $1.8 $8.1
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
February 2012 n/a $7.2
September 2015 n/a $11.5
December 2015 $2.9 n/a
June 2016 $2.9 $11.0

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

Contact

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Page last updated: 23 September 2016