Investors Drive Home Loan Approvals: ABS

The latest housing finance figures released by the Australian Bureau of Statistics today reveal that home-loan approvals rose by a seasonally adjusted 0.5% from May.

Finance approvals to build new houses rose by 3.6% in June. The value of total housing finance rose 0.8% to $33.26 billion in the month, seasonally adjusted, according to the Australian Bureau of Statistics.

[Related reading: Building Approvals Jump 10.9% In June]

The rise was driven by a 1.6% boost in the value of loans for investment housing, while owner-occupied housing loan approvals increased by 0.3 per cent.

The number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 15% in June, from 14% in May.

Approvals for investment lending were stronger than analysts had expected, and took growth in the value of investment lending approvals to 5.7% for the year to June, Westpac senior economist Matthew Hassan said.

“The numbers will be disappointing for regulators looking for a more material slowing in investor activity, although the full impact of macroprudential measures has yet to come through.”

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