Invest
Downward trend in investment house finance approvals
Data from the Australian Bureau of Statistics has shown a decline in financing approvals for investment houses, according to the Real Estate Institute of Australia.
Downward trend in investment house finance approvals
Data from the Australian Bureau of Statistics has shown a decline in financing approvals for investment houses, according to the Real Estate Institute of Australia.
Malcolm Gunning, the president of the Real Estate Institute of Australia (REIA), says the data shows the value of investment housing commitments decreased by 1.5 per cent in May in trend terms, following a fall in the previous month, “well down” from its 2015 peak.
“To put this in perspective, it needs to remembered that the May figures are the first to show the impact of the actions by the regulators and banks to limit bank lending to dampen investor demand for property,” Mr Gunning said.
“Overall, the figures for May 2017 show, in trend terms that the number of owner-occupied finance commitments decreased by 0.4 per cent. If refinancing is excluded, the number of owner-occupied finance commitments increased by 0.1 per cent and is the ninth consecutive month of increases.”
The figures also show decreases were recorded in all states except the ACT and Tasmania, with Queensland recording the largest decrease of 0.9 per cent. The ACT increased by 0.5 per cent and Tasmania remained flat.
The number of established dwellings purchase commitments decreased by 0.6 per cent. New dwelling construction increased by 1.0 per cent and the purchase of new dwellings increased by 0.4 per cent.
The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, increased to 14.0 per cent, the highest since July 2015.
The number of first home buyer commitments increased by 28.9 per cent for the month and is the highest since October 2014.
“They [the data] show that the market is adjusting with owner-occupiers and first home buyers returning to the market as investor activity decreases,” Mr Gunning said.
“It is worth noting that this is before the recent concessions introduced for first home buyers.”
RELATED ARTICLES
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
