Login
iscover
The December 2018 housing finance figures released by the ABS show that the number of loans for housing continues to decline, according to the REIA.
REIA president Adrian Kelly said that the trend is well entrenched.
“Overall, the figures for December 2018 show the number of owner-occupied finance commitments decreased by 0.1 [of a percentage point] — the 15th consecutive month of decreases.
“If refinancing is excluded, the number of owner-occupied finance commitments decreased by 1.2 per cent — also the 15th consecutive month of decreases and the lowest since April 2013.”
He said that decreases were recorded in Victoria, New South Wales and Queensland. South Australia, the Northern Territory and the Australian Capital Territory were unchanged. Western Australia and Tasmania had increases, with the largest of 0.5 of a percentage point recorded in Tasmania.
“The value of investment housing commitments decreased by 2.5 per cent in December and is the lowest since 2012 and less than half of the April 2015 peak,” Mr Kelly said.
“The number of established dwellings purchase commitments decreased by 1.2 per cent, while the purchase of new dwellings decreased by 0.1 [of a percentage point] and new dwelling construction fell by 1.2 per cent.
“The proportion of first home buyers, as part of the total owner-occupied housing finance commitments, decreased in December to 17.7 per cent from 18.3 per cent in November, and the number of loans to first home buyers decreased by 18.8 per cent.”
Mr Kelly said that the continued decline in housing finance reflects the slowing market as well as the APRA restrictions on investors, the fallout from the royal commission and concerns about changes to property taxation and its impact should there be a change in government.
“There is a clear risk that the decline in activity in the residential property market will become a major drag on the economy,” the REIA president said.
You are not authorised to post comments.
Comments will undergo moderation before they get published.