July 2017

State Of Our Property Finance Market

The ABS released some interesting data this week on the state of our property finance market for May 2017...

  • The number of first home buyer commitments increased by 28.9% for the month and is the highest since October 2014.
  • The number of owner-occupied finance commitments increased by 0.1% and is the ninth consecutive month of increases.
  • Approvals for investors decreased by 1.5% and is well down from its 2015 peak.
  • New dwelling construction increased by 1% and the purchase of new dwellings increased by 0.4%.
  • The number of established dwellings purchases decreased by 0.6%.

Clearly the actions taken by the regulators and banks to tighten lending to investors and foreigners has dampened those buying sectors, while the owner-occupied market has remained steady.

On the other hand, the number of first home buyers increased dramatically, and as the government incentives only kicked in this month, they are not yet reflected in the data. We expect to see the first home buyer market share increase further over the coming months.

No surprises here, with the markets reacting exactly as expected.