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5609.0 - Housing Finance, Australia, Apr 2005  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 08/06/2005   
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APRIL KEY FIGURES

Trend estimates
Seasonally adjusted estimates
Apr 2005
Mar 2005 to Apr 2005
Apr 2005
Mar 2005 to Apr 2005

Value of dwelling commitments(a)
$m
% change
$m
% change
Total dwellings
17,799
0.8
17,639
0.4
Owner occupied housing
11,935
1.2
11,830
-0.3
Investment housing - fixed loans(b)
5,864
0.1
5,809
1.9
Number of dwelling commitments(a)
no.
% change
no.
% change
Owner occupied housing
56,224
1.2
56,227
0.6
Construction of dwellings
4,553
0.9
4,554
0.5
Purchase of new dwellings
2,167
2.1
2,239
5.2
Purchase of established dwellings
49,504
1.2
49,434
0.4

(a) Includes refinancing.
(b) Excludes revolving credit.

Housing finance,
Value of dwellings
Graph: Housing finance

Owner occupied housing,
Number of dwellings
Graph: Owner occupied housing



APRIL KEY POINTS


TREND ESTIMATES

  • Total value of dwelling finance commitments excluding alterations and additions increased by 0.8% in April 2005, the ninth consecutive monthly increase. Owner occupied housing increased by 1.2%, while investment housing rose by 0.1%.
  • The number of commitments for owner occupation increased by 1.2% in April 2005, while the number excluding refinancing rose by 0.7%.


SEASONALLY ADJUSTED ESTIMATES
  • Total value of dwelling finance commitments excluding alterations and additions rose by 0.4% in April 2005.
  • Investment housing commitments increased by 1.9%, driven primarily by a large increase in construction of dwellings for rent or resale (up $103m, 19.9%). This increase in investment housing commitments more than offset the slight fall in owner occupied housing commitments (down 0.3%).
  • The number of commitments for owner occupied housing increased by 0.6% in April 2005, while the number excluding refinancing decreased by 1.8%.


ORIGINAL ESTIMATES
  • The percentage of the number of commitments for owner-occupied housing at a fixed rate of interest (for at least two years) decreased from 14.6% in March to 13.4% in April, but remains at a relatively high proportion of total commitments.


NOTES

CHANGES IN THIS ISSUE

The ABS now has a sufficient time series of observations for a number of housing finance component series to improve their seasonal adjustment and the associated trend estimates, by more fully accounting for the impact of Easter.


The improved seasonal adjustment method has been applied to:

  • Owner Occupied Refinancing, both number and value
  • Owner Occupied Wholesale lenders, both number and value

Seasonal series whose derivation includes one of those four series have also been improved, as have the associated trend estimates. Series impacted include:
  • Owner Occupied Total less Refinancing, both number and value.

For further information, users may wish to refer to Working Papers in Econometrics and Applied Statistics: No 99/3 Adjusting for an Easter Proximity Effect (ABS Cat. No. 1351.0).


Data quality assurance procedures identified misreporting of the number of loans for April, which the relevant data provider was not able to correct in the time available. As a result, the ABS has imputed the number of loans based on the movement in loan value from March to April for this provider.


Estimates of the number of dwellings refinanced for March, February and January 2005 have been revised due to a provider correcting errors in previously provided data.



INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Darren Page on (02) 6252 6731.



SUMMARY COMMENTARY


SUMMARY OF FINDINGS


DWELLINGS FINANCED

Value of Dwellings Financed

The total value of dwelling commitments excluding alterations and additions (seasonally adjusted) increased by 0.4% in April 2005. The total housing finance trend increased by 0.8%, the ninth consecutive monthly increase.


The total value of owner occupied commitments (seasonally adjusted) decreased by 0.3% (down $33m) in April 2005, following an increase of 0.5% in March. The decrease in purchase of established dwellings excluding refinancing (down $162m, -2.3%) more than offset increases in refinancing of established dwellings (up $116m, 3.6%), purchase of new dwellings (up $9m, 1.9%) and construction of dwellings (up $4m, 0.4%). The trend series in the value of owner occupied commitments rose by 1.2% in April.


The seasonally adjusted series for value of investment housing commitments (including finance for construction and finance for rent or resale) increased by 1.9% (up $111m) in April 2005, following a fall of 5.1% in March. The increase this month was due to increases in the construction of dwellings for rent or resale (up $103m, 19.9%) and purchase of dwellings for rent or resale by individuals (up $13m, 0.3%) more than offsetting a decrease in purchase of dwellings for rent or resale by others (down $6m, -1.3%). The trend series in total value of investment commitments rose by 0.1%.

Graph: Investment housing - total


Number of Owner Occupied Dwellings Financed

The number of owner occupied dwelling commitments (seasonally adjusted) increased by 0.6% (up 350) in April 2005, the ninth increase in the past ten months. Increases in the refinancing of established dwellings (up 1050, 6.4%), purchase of new dwellings (up 110, 5.2%) and construction of dwellings (up 21, 0.5%) more than offset the decrease in purchase of established dwellings excluding refinancing (down 831, -2.5%). The total owner occupied housing finance trend rose by 1.2% in April 2005, the tenth consecutive monthly increase.


Increases were recorded in seasonally adjusted terms in Victoria (up 171, 1.3%), Tasmania (up 132, 13.0%), South Australia (up 82, 1.7%), Northern Territory (up 50, 9.9%), Queensland (up 49, 0.4%) and Australian Capital Territory (up 26, 4.4%). These increases were partially offset by a falls in New South Wales (down 300, -1.8%) and Western Australia (down 140, -1.8%). The trend increased in all states and territories except Northern Territory.


In original terms, first home buyer commitments as a percentage of total owner occupied housing commitments increased to 16.1% in April 2005. The percentage of commitments at a fixed rate of interest (for at least two years) decreased from 14.6% in March to 13.4% in April.

Graph: Number of Owner Occupied Dwellings Financed


Number of Owner Occupied Dwellings Financed Excluding Refinancing

The number of owner occupied dwellings financed excluding refinancing (seasonally adjusted) decreased by 1.8% in April 2005, the first decrease since June 2004. The trend increased by 0.7% in April 2005, the eleventh consecutive monthly increase but at a decelerating rate for the fifth successive month.

Graph: Number of owner occupied dwellings financed excluding refinancing



PURPOSE OF FINANCE (OWNER OCCUPATION)

Construction of dwellings

The seasonally adjusted number of construction commitments for owner occupation rose by 0.5% in April 2005, following an increase of 0.4% in March. The trend series increased by 0.9% in April 2005.

Graph: Construction of dwellings


Purchase of new dwellings

The number of finance commitments for the purchase of new dwellings for owner occupation (seasonally adjusted) rose by 5.2% in April 2005, following a rise of 2.8% in March. The trend series rose by 2.1% in April 2005.

Graph: Purchase of new dwellings


Purchase of established dwellings

The seasonally adjusted established dwelling for owner occupation series increased by 0.4% (up 219) in April 2005, the sixth successive month of increasing commitments. The increase was due mainly to the strength in refinancing of established dwellings (up 1050, 6.4%). The trend rose by 1.2% in April 2005, the tenth consecutive monthly increase.

Graph: Purchase of established dwellings


Refinancing

The number of refinancing commitments for owner occupied housing (seasonally adjusted) rose by 6.4% in April 2005. Trend series rose by 2.3% in April 2005.

Graph: Refinancing



TYPE OF LENDER (OWNER OCCUPATION)

Banks

The number of owner occupied dwellings financed by banks (seasonally adjusted) increased by 3.4% in April 2005, the sixth consecutive monthly increase. The trend series increased by 1.6% in April.

Graph: Owner occupied dwellings financed by banks


Non-banks

Non-bank commitments for owner occupied housing (seasonally adjusted) fell by 8.1% in April 2005, following an increase of 3.0% in March. This decrease was primarily driven by the seasonally adjusted decrease for permanent building society (down 20.0%) while wholesale lenders increased by 0.1%. The non-bank trend series decreased by 0.2% in April 2005.

Graph: Owner occupied dwellings financed by non-banks



HOUSING LOAN OUTSTANDINGS

At the end of April 2005, housing loans outstanding of authorised deposit-taking institutions was $511,008m, up $7,078m (1.4%) from March's closing balance. Owner occupied housing loans increased by $5,070m (1.5%) to close at $340,504m, while investment housing loans outstanding increased by $2,008m (1.2%) to reach a closing balance of $170,504m.


Bank loans increased by $6,816m (1.4%) during April to a closing stock of $480,740m. Owner occupied housing loans of banks increased by $4,798m (1.5%) to $316,233m, while investment housing loans increased $2,018m (1.2%) to $164,507m.


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