Economic briefing note on housing finance in May 2016

May 2016

Release date: 11 July 2016
Next release: 10 August 2016

Victorian monthly loan approvals to owner-occupiers decreased by 1.5 per cent to 16,146 in May 2016. Nationally loan approvals to owner-occupiers decreased by 1.0 per cent to 56,648.

In the month to May 2016, the number of loans to owner-occupiers for new dwellings increased in Tasmania (up 38.7 per cent), Victoria (up 12.6 per cent), New South Wales (up 12.3 per cent), South Australia (up 10.0 per cent), Western Australia (up 9.3 per cent) and Queensland (up 4.5 per cent).

In May 2016, Victoria's loans to owner-occupiers for new dwellings contributed 29.7 per cent (2671) to the national total (8990). For the same period, Victoria contributed 28.3 per cent (14,765) of loan approvals for established dwellings to the national total (52,142).

Nationally, the value of lending for new and established housing increased by 2.0 per cent in May 2016. This reflected an increase in lending to owner-occupiers (up 0.4 per cent) and an increase in lending to investors (up 3.9 per cent).

Number of housing loans

Number of housing loans NSW VIC QLD SA WA TAS AUS
Number of loans to owner-occupiers (seasonally adjusted) 17,784 16,146 10,763 3879 6394 949 56,648
Change in the month to May 2016 (%) 0.2 -1.5 1.1 2.5 0.0 2.8 -10
Annual change to May 2016 (%) 16.7 16.2 6.3 16.7 -4.2 9.5 11.4
Number of loans to owner-occupiers new dwellings (original) 2349 2671 1594 549 1438 147 8990
Change in the month to May 2016 (%) 12.3 12.6 4.5 10.0 9.3 38.7 10.1
Annual change to May 2016 (%) 8.6 8.5 -3.2 3.0 -12.8 16.7 2.1
Number of loans to owner-occupiers established dwellings (original) 16,559 14,765 9670 3641 5375 888 52,142
Change in the month to May 2016 (%) 7.3 7.5 9.0 13.4 5.8 5.2 8.0
Annual change to May 2016 (%) 21.7 23.6 12.7 24.9 3.5 10.9 18.2

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 May 2006 and May 2016.  In May 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 February 2009, when there was a spike in the proportion of housing loans to owners (up to 65 percent) 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 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 May 2016 54 per cent of the value of housing loans was made to owners, with 46 per cent made to investors.

Date Owners (%) Investors (%)
May 2006 60 40
February 2009 65 35
May 2015 46 54
May 2016 54 46

Value of non-refinancing housing loan by type (Australia)

This chart shows the value of non-refinancing housing loans for new dwellings and established dwellings in Australia between May 2006 and May 2016.  The value of non-refinancing housing loans for established dwellings in the month to May 2006 was $14.6 billion. Between May 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 $21.3 billion in May 2016.  The value of non-refinancing housing loans for new dwellings in the month to May 2006 was $2.3 billion. Between May 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 $4.0 billion in May 2016.

Date New dwellings ($ billion) Established dwellings ($ billion)
May 2006 2.3 14.6
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
May 2016 4.0 21.3

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

Contact

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Page last updated: 23 September 2016