Economic briefing note on housing finance in March 2016

March 2016

Release date: 11 May 2016
Next release: 8 June 2016

Victorian monthly loan approvals to owner-occupiers increased by 0.3 per cent to 16,108 in March 2016. Nationally loan approvals to owner-occupiers decreased by 0.9 per cent to 56,316.

In the month to March 2016, the growth in the number of loans to owner-occupiers for new dwellings decreased in VIC (-0.7 per cent) and NSW (-1.0 per cent) but increased in SA (17.7 per cent), QLD (9.0 per cent), WA (3.3 per cent), and TAS (0.9 per cent).

In March 2016, Victoria's loans to owner-occupiers for new dwellings contributed 28.4 per cent (2287) to the national total (8061). For the same period, Victoria contributed 27.1 per cent (13,319) of loans approvals for established dwellings to the national total (49,125).

Nationally, the value of lending for new and established housing increased by 0.2 per cent in March 2016. This reflected a decrease in lending to owner-occupiers (down 1.0 per cent) and an increase in lending to investors (up 1.5 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) 17,581 16,108 10,457 3745 6387 843 56,316
Change in the month to March 2016 (%) -1.1 0.3 -1.2 0.7 -1.0 -3.2 -0.9
Annual change to March 2016 (%) 7.6 8.3 0.5 7.1 -9.1 -8.0 3.8
Number of loans to owner-occupiers new dwellings (original) 2018 2287 1604 551 1251 113 8061
Change in the month to March 2016 (%) -1.0 -0.7 9.0 17.7 3.3 0.9 3.0
Annual change to June March (%) -10.2 -2.5 -7.2 14.1 -27.9 -22.1 -9.4
Number of loans to owner-occupiers established dwellings (original) 15,912 13,319 9543 3310 5169 746 49,125
Change in the month to March 2016 (%) 12.5 6.8 4.9 6.5 3.0 2.2 7.8
Annual change to March 2016 (%) 5.5 5.1 -1.3 0.5 -8.9 -12.1 1.6

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 March 2006 and March 2016.  In March 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 66 percent) with only 34 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 53 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 March 2016 54 per cent of the value of housing loans was made to owners, with 46 per cent made to investors.

Date Owners (%) Investors (%)
March 2006 58 42
March 2009 66 34
May 2015 n/a 53
March 2016 54 46

Value of housing loans by owners and investors (Australia)

This chart shows the value of non-refinancing housing loans for new dwellings and established dwellings in Australia between March 2006 and March 2016.  The value of non-refinancing housing loans for established dwellings in the month to March 2006 was $13.7 billion. Between March 2006 and June 2007 there was an upwards trend in the value of non-refinancing  loans for established dwellings, peaking at a value of $18.2 billion in June 2007. Between June 2007 and June 2008 there was a downwards trend in the value of non-refinancing  loans for established dwellings, down to $12.8 billion in June 2008. Between June 2008 and September 2009 there was an upwards trend in the value of non-refinancing  loans for established dwellings, peaking at a value of $16.9 billion in September 2009. Between September 2009 and March 2011 there was a downwards trend in the value of non-refinancing  loans for established dwellings, down to $13.2 billion in March 2011. Between March 2011 and August 2015 there was an upwards trend in the value of non-refinancing  loans for established dwellings, peaking at a value of $23.7 billion in August 2015. Since August 2015 the value of non-refinancing  loans for established dwellings has declined to $21.2 billion in March 2016.  The value of non-refinancing housing loans for new dwellings in the month to March 2006 was $2.5 billion. Between March 2006 and June 2007 there was an upwards trend in the value of non-refinancing  loans for new dwellings, peaking at a value of $2.9 billion in June 2007. Between June 2007 and September 2008 there was a downwards trend in the value of non-refinancing  loans for new dwellings, down to $1.9 billion in September 2008. Between September 2008 and October 2009 there was an upwards trend in the value of non-refinancing  loans for new dwellings, peaking at a value of $3.1 billion in October 2009. Between October 2009 and February 2011 there was a downwards trend in the value of non-refinancing  loans for new dwellings, down to $2.2 billion in February 2011. Since February 2011 there has been an upwards trend in the value of non-refinancing  loans for new dwellings, reaching $4.4 billion in March 2016.

Date range New dwellings ($ billion) Established dwellings ($ billion)
March 2006 $2.5 $13.7
June 2007 $2.9 $18.2
June 2008 n/a $12.8
September 2008 $1.9 n/a
September 2009 n/a $16.9
October 2009 $3.1 n/a
February 2011 $2.2 n/a
March 2011 n/a $13.2
August 2015 n/a $23.7
March 2016 $4.4 $21.1

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

Contact

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Page last updated: 23 September 2016