Key statistics
The August 2023 lending indicators, had notable shifts in new loan commitments (all figures are seasonally adjusted):
1) Housing loan commitments experienced a 2.2% increase.
2) Personal fixed-term loans saw a substantial rise of 6.1%.
3) Business construction loans are known for their volatility, surged by a significant 17.2%. However, in trends, they registered a slight decrease of 0.5%.
4) Business purchases of property loans, also characterized by their volatility, displayed a noteworthy increase of 10.8%. In trend terms, they rose by 0.8%.
a) Loan commitments for owner occupier, investor housing and personal fixed term loans exclude refinancing.
Housing finance: First home buyers
This month, the publication of the number and value of new loan commitments for first home buyers has delayed due to ongoing data reporting challenges. The ABS and APRA are collaborating with data providers to expedite the resolution process. Consequently, I advise to exercise caution when relying on the first home buyer data from the previous 12 months.
Housing finance
During August 2023, in terms adjusted for seasonal variations, the value of new loan commitments exhibited the following changes:
1) Total housing commitments increased by 2.2% to reach $24.8 billion, rebounding from a 1.1% decline in July. However, this figure was 9.4% lower than the corresponding period from the previous year.
2) Commitments for owner-occupied housing recorded a 2.6% rise, totaling $16.1 billion. Nevertheless, this was 12.5% lower than the same period last year.
3) Investor housing commitments experienced a 1.6% increase, reaching $8.8 billion. Nonetheless, this figure was 3.0% lower than same period in the previous year.
In August 2023, when adjusted for seasonal variations, the value of external refinancing displayed the following trends:
1) There was a 3.9% decline in total housing, amounting to $20.6 billion. However, this figure was notably 12.4% higher compared to the same period last year.
2) Within the owner-occupier housing category, there was a 3.3% decrease, resulting in a total of $14.0 billion. It represented a 12.4% increase compared to the previous year.
3) Investor housing also experienced a decline of 5.0%, with the total value of refinancing standing at $6.6 billion. Nevertheless, this figure marked a 12.3% increase compared to the same period in the previous year.
Personal finance
In August 2023, when considering seasonally adjusted terms, the value of new loan commitments demonstrated the following changes:
1) Total fixed term personal finance saw a notable increase of 6.1%, following a 6.0% rise in July.
2) Specifically for road vehicles, there was a substantial rise of 5.9%.
3) In the realm of personal investment, there was a significant surge of 8.2%.
Business finance
In August 2023, when analyzed in seasonally adjusted terms, the value of new loan commitments showed distinctive patterns:
1) Construction finance experienced a significant surge of 17.2%, recovering from a notable 21.8% decline in July. However, it displayed a slight decrease of 0.5% in the trends.
2) Meanwhile, commitments for property purchases saw a substantial increase of 10.8%, rebounding from a 1.2% decrease in July. In trend terms, there was a notable rise of 0.8%.
It’s important to note that these series can exhibit volatile month-to-month movements due to their sensitivity to a small number of high-value loans.
Housing finance (detailed)
a) Housing encompasses loan commitments for various purposes, including dwellings, purchasing residential land, and making alterations and additions.
b) It’s important to note that, as of July 2019, there is no available seasonally adjusted or trend data for the number of owner-occupiers or investors in the category of total housing.
Regarding the August 2023 data, in seasonally adjusted terms, the value of new loan commitments displayed the following changes:
1) For owner-occupiers, there was a 2.6% increase, rebounding from a 1.6% decline in July.
2) For investors, there was a 1.6% rise, following a 0.3% decrease in July.
In August 2023, when considering owner-occupier housing in seasonally adjusted terms, the value of new loan commitments exhibited the following trends:
1) For the purchase of existing dwellings, there was a 2.5% increase. However, this figure was 9.5% lower than the same period last year.
2) In constructing new dwellings, there was a 1.4% rise. Nevertheless, this figure marked a substantial 33.7% decrease compared to the previous year.
3) Regarding the purchase of new dwellings, there was a 1.0% decline, resulting in a 7.1% decrease compared to the same period in the previous year.
a) Statistics concerning owner-occupier commitments for residential land before July 2019 are estimated based on data pertaining to the overall value of pledges for residential land.
b) In the graph, users can toggle the visibility of specific series by clicking on the legend above. For instance, one can hide or unhide the “purchase of existing dwellings” series to focus on other aspects of owner-occupier lending.
In August 2023, when considering owner-occupier housing in seasonally adjusted terms, the value of new loan commitments exhibited distinct regional patterns:
1) Victoria saw a notable increase of 4.0%.
2) South Australia experienced a significant surge of 12.9%.
3) New South Wales showed a modest rise of 2.1%.
4) Queensland displayed a moderate increase of 2.9%.
5) Western Australia recorded a substantial rise of 4.9%.
6) Tasmania demonstrated a remarkable increase of 17.9%.
7) The Northern Territory witnessed a notable surge of 30.4%.
In the Australian Capital Territory, there was a 3.3% decline. It’s worth noting that the Tasmania, Northern Territory, and Australian Capital Territory series are comparatively smaller and tend to exhibit more volatility.
In August 2023, when considering investor housing in seasonally adjusted terms, the value of new loan commitments displayed distinct regional trends:
1) Western Australia saw a significant rise of 14.1%.
2) New South Wales experienced a modest increase of 1.3%.
3) South Australia recorded a notable increase of 5.2%.
4) Victoria showed a marginal rise of 0.2%.
Conversely,
1) Queensland witnessed a decline of 4.2%.
2) The Australian Capital Territory saw a substantial decrease of 8.1%.
3) The Northern Territory experienced a significant drop of 14.7%.
4) Tasmania demonstrated a notable decrease of 3.5%.
It’s important to note that the Tasmania, Northern Territory, and Australian Capital Territory series are smaller and tend to exhibit greater volatility.
In August 2023, considering original terms:
1) The value of total new variable rate loan commitments funded in the month experienced a notable increase of 8.9%.
2) On the other hand, the value of total new fixed rate loan commitments funded in the month saw a significant decline of 12.9%.
a) A loan is considered funded once the borrower can access any part of the funds in accordance with the contract terms. This step occurs subsequent to the borrower accepting the commitment to provide financing. Because of this timing discrepancy, the value of loans funded in the month, as depicted in this graph, may not align with the value of new borrower-accepted commitments for the same month in other graphs and download tables.
b) It’s worth noting that total fixed rate and total variable rate housing loans encompass their respective components for first home buyers.
In August 2023, in original terms, the average loan sizes for owner-occupier dwellings, encompassing construction, purchase of new property, and existing property:
1) Experienced a 1.4% decrease at the national level, reducing from $593k to $585k. Nevertheless, this figure stood at 21.8% higher than the pre-pandemic average observed in February 2020.
a) It’s important to note that although the series displayed in the graph above connect between available data points, there may be gaps where data points are unavailable for publication.
First home buyers
This month, the publication of the number and value of new loan commitments for first home buyers has delayed due to ongoing data reporting challenges. The ABS and APRA are collaborating with data providers to address these issues promptly. Therefore, I advise to exercise caution when relying on the first home buyer data from the previous 12 months.
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