Queensland Owner Occupier Loans Up Year On Year: ABS

Australian Bureau of Statistics (ABS) figures released Friday reveal Queensland saw the highest number of loans compared to January 2016, despite owner occupier lending falling 0.2 per cent seasonally adjusted according to the research released March 10.

The total value of dwelling commitments excluding alterations and additions (trend) rose 1.1% in January 2017 compared with December 2016 and the seasonally adjusted series rose 1.5% in January 2017.

The total value of owner occupied housing commitments (trend) rose (up $101m, 0.5%) in January 2017. Rises were recorded in commitments for the purchase of new dwellings (up $15m, 1.4%) and commitments for the purchase of established dwellings (up $87m, 0.5%). Commitments for the construction of dwellings was flat. The seasonally adjusted series for the total value of owner occupied housing commitments fell 0.2% in January 2017.

According to Housing Industry of Australia (HIA) commentary, in January 2017 the number of loans to owner occupiers constructing or purchasing new homes increased in three states. Compared with January 2016, the volume of loans rose most strongly in Queensland (+13.1 per cent), followed by South Australia (+9.2 per cent) and Victoria (+8.8 per cent). The largest reduction occurred in Western Australia (-9.3 per cent), followed by Tasmania (-3.5 per cent) and New South Wales (-1.2 per cent).
First Home Buyers
The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 13.4% in January 2017 from 13.8% in December 2016. Between December 2016 and January 2017, the average loan size for first home buyers fell $4,400 to $315,100. The average loan size for all owner occupied housing commitments fell $12,200 to $363,600 for the same period.
Number of Owner Occupied Dwellings Financed - State
Between December 2016 and January 2017, the number of owner occupied housing commitments (trend) rose in Victoria (up 144, 1.0%), New South Wales (up 133, 0.8%), Queensland (up 71, 0.7%) and the Australian Capital Territory (up 29, 2.7%), while falls were recorded in Western Australia (down 63, 1.1%), South Australia (down 14, 0.4%), Tasmania (down 7, 0.7%) and the Northern Territory (down 1, 0.6%).

The seasonally adjusted estimates rose in Victoria (up 234, 1.6%), New South Wales (up 224, 1.3%), Queensland (up 174, 1.6%).

Housing Industry Australia's (HIA) Shane Garrett said it was the strongest year of dwelling starts since the end of World War 2.

“There are two dynamics going on with respect to new home loans. With 2016 representing the strongest year for new dwelling starts since the end of WWII, a huge number of new homes are now becoming available for purchase making lending volumes in this area accordingly high. However, the number of loans to people constructing their own home has actually been falling back since mid-2014 and this trend has affected overall lending activity,” Mr Garrett said.