1367.5 - Western Australian Statistical Indicators, Mar 2009  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 23/04/2009   
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SECTION 8 INVESTMENT AND FINANCE


Private new capital expenditure

  • In trend chain volume terms, private new capital expenditure in Western Australia rose by 6.9% to just over $7 billion in the December quarter 2008. This rise was higher than the national growth of 4.2%.
  • The total increase for Western Australia was driven by investment in building and structures, which rose by almost 10% in the December quarter, to just under $5 billion.

PRIVATE NEW CAPITAL EXPENDITURE, Chain volume measures
Graph: PRIVATE NEW CAPITAL EXPENDITURE, Chain volume measures

22 PRIVATE NEW CAPITAL EXPENDITURE, By type of asset - Chain volume measures(a): Trend
Trend
Buildings and structures
Equipment, plant and machinery
Total
Reference period
$m
$m
$m
2006-2007
(b)13 386
(b)6 490
(b)19 865
2007-2008
14 780
7 994
22 774
2007
September
3 554
1 821
5 379
December
3 572
1 901
5 473
2008
March
3 664
2 064
5 727
June
3 990
2 208
6 195
September
4 459
2 262
6 720
December
4 901
2 253
7 186
(a) Reference year for chain volume measures is 2006-07.
(b) Break in series between December 2006 and March 2007.
Source: Private New Capital Expenditure and Expected Expenditure, Australia, cat. no. 5625.0.
  • In original current price terms, Western Australia's private new capital expenditure rose to $8.5 billion in the December quarter 2008. This expenditure was about 24% higher than in the previous quarter and 42% higher than in the corresponding quarter of 2007.
  • The mining industry continued to be a strong driver of growth, with expenditure rising by 23% to $6.6 billion in the December quarter 2008. Expenditure on manufacturing rose 34% to $550 million in the same three month period.

23 PRIVATE NEW CAPITAL EXPENDITURE, By industry - Current prices: Original
Mining
Manufacturing
Other selected industries
Total
Reference period
$m
$m
$m
$m
2006-2007
13 542
1 492
4 683
19 717
2007-2008
17 111
1 653
4 428
23 191
2007
September
3 602
318
^1 103
5 023
December
4 250
^481
^1 280
6 011
2008
March
4 264
^409
904
5 577
June
4 995
^445
1 141
6 580
September
5 383
^409
1 107
6 899
December
6 612
550
1 367
8 529
^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
Source: Private New Capital Expenditure and Expected Expenditure, Australia, cat. no. 5625.0.



Lending finance commitments
  • In original terms commercial finance lending commitments decreased in value by more than 11% in the month of January 2009. This followed an increase in December of 23%, mainly attributable to the sharp rise in revolving credit commitments (58%) between November and December 2008. These fell back a little in January 2009 as did the value of fixed loans for commercial purposes.
  • The value of personal finance commitments decreased by just over 6% in the month of January 2009 after a substantial increase (almost 15%) in the month of December. Fixed loans (up 21%) and revolving credit (up 10%) both contributed to this rise.

24 LENDING FINANCE COMMITMENTS: Original
Reference period
COMMERCIAL FINANCE
PERSONAL FINANCE
Fixed
loans(a)
Revolving
credit(b)
Total
Fixed
loans(a)
Revolving
credit(b)
Total
Total
lease finance
commitments
2006-07
23 634.6
13 340.5
36 975.1
6 768.2
6 257.2
13 025.4
427.2
2007-08
28 782.8
11 379.3
40 891.1
6 251.9
6 524.9
12 776.8
535.1
2007
November
2 159.7
2 369.6
4 529.4
611.5
552.8
1 164.2
46.5
December
3 895.5
1 008.2
4 903.7
505.5
567.8
1 073.3
38.9
2008
January
1 929.4
605.0
2 534.4
513.7
493.3
1 007.0
37.3
February
1 770.2
1 000.9
2 771.1
506.3
539.1
1 045.4
37.5
March
2 319.6
908.5
3 228.0
459.9
520.6
980.5
45.2
April
2 492.7
837.1
3 329.8
501.9
537.8
1 039.6
42.4
May
2 307.3
815.3
3 122.7
482.9
564.5
1 047.3
46.8
June
2 397.4
873.5
3 270.9
548.6
542.0
1 090.5
63.7
July
1 975.9
1 337.0
3 312.9
485.5
626.7
1 112.1
51.3
August
1 959.8
1 272.7
3 232.5
425.4
449.7
875.1
39.9
September
1 989.7
896.4
2 886.1
459.5
481.6
941.1
41.3
October
2 140.4
719.6
2 859.9
447.7
549.3
996.9
51.2
November
1 610.7
783.5
2 394.2
350.7
446.8
797.5
33.5
December
1 722.0
1 234.8
2 956.8
424.9
490.1
915.1
42.5
2009
January
1 468.6
1 151.3
2 619.9
401.8
455.1
856.9
18.7
(a) Includes refinancing.
(b) New and increased credit limits during the period. Includes credit cards.
Source: Lending Finance, Australia, cat. no. 5671.0.





Housing finance commitments

  • After 15 months of continuing decline, the number of dwellings financed (trend) in the state commenced a slow rise from September 2008 (6,285) reaching 6,432 in January 2009. The upturn reflects recent falls in bank interest rates as well as government initiatives to stimulate the economy, including the increase in first home-buyer grants.
  • While the number of dwellings financed grew by 1.5% in the three months to January, the January 2009 figure was still almost 20% down compared with January 2008 (8,002).
HOUSING FINANCE COMMITMENTS, Number of dwellings financed
Graph: HOUSING FINANCE COMMITMENTS, Number of dwellings financed

  • After falling for 12 consecutive months, the value of housing commitments (trend) began to rise again in August 2008. In the three months to January 2009, the value grew by 5.3% and by 1.7% in the month of January alone.
  • The total value of housing commitments fell in the year to January 2009 from approximately $1.9 billion to $1.7 billion. Falling house prices, as well as the reduced number of dwellings financed, are factors in this decline. However, in percentage terms, the decline in the value of commitments (10%) over the year was only half the decline shown in the total number of dwellings financed (20%) over the same period.

25 Housing Finance Commitments for Owner Occupation(a), By dwellings financed: Trend
Trend
Number of dwellings financed
Total value of dwelling commitments
Reference period
no.
$m
2006-07
104 820
23 240.5
2007-08
93 310
22 281.3
2007
November
8 298
1 970.9
December
8 199
1 946.0
2008
January
8 002
1 901.5
February
7 684
1 835.5
March
7 302
1 756.5
April
6 921
1 675.3
May
6 614
1 610.2
June
6 415
1 570.4
July
6 307
1 556.4
August
6 278
1 567.6
September
6 285
1 592.2
October
6 303
1 619.9
November
6 332
1 648.2
December
6 378
1 677.5
2009
January
6 432
1 706.8
(a) Excludes alterations and additions. Includes refinancing.
Source: Housing Finance, Australia, cat. no. 5609.0.
  • Based on original data, the number of loans to first home buyers rose sharply in December 2008 reaching its highest level since July 2001. Again this increase can be attributed to reduced interest rates and falling house prices as well as activity to take advantage of the temporary increase in the first home buyer's grant at the end of the calendar year. Loans to new home buyers subsequently decreased in January 2009. Nevertheless, the number of first home-buyer loans financed that month (1,613) was almost 14% higher than comparable loans financed in January 2008 (1,417) and 39% higher than those financed in March 2008 (1,161), when the monthly figure had fallen to its lowest point.
  • The size of the average home loan increased fairly steadily over the year with first home-buyers experiencing a 22% increase between January 2008 ($231,100) and January 2009 ($282,300).
  • For buyers of second and subsequent homes, the number of dwellings financed had a more erratic course during the year to January 2009, following a long-term downward movement but with small upswings in the months of April, July, October and December. The number decreased again in the month of January (-13%), reaching its lowest point (4,234) since September 2001 (4,074). The January 2009 figure was almost 33% lower than the comparable figure for January 2008 (6,297).

26 HOUSING FINANCE COMMITMENTS FOR OWNER OCCUPATION(a), By type of buyer: Original
FIRST HOME BUYERS
NON-FIRST HOME BUYERS
Number of dwellings financed
Total value of dwelling commitments
Average loan size
Number of dwellings financed
Total value of dwelling commitments
Average loan size
Reference period
no.
$m
$'000
no.
$m
$'000
2006-2007
13 789
3 027.2
219.5
90 808
20 421.5
224.9
2007-2008
16 445
3 956.9
240.6
76 326
18 247.3
239.1
2007
November
1 478
356.4
241.1
7 305
1 693.3
231.8
December
1 366
308.3
225.7
6 376
1 488.4
233.4
2008
January
1 417
327.5
231.1
6 297
1 465.7
232.8
February
1 325
310.1
234.0
6 131
1 503.8
245.3
March
1 161
272.1
234.4
5 664
1 358.5
239.8
April
1 309
322.5
246.4
5 714
1 394.7
244.1
May
1 207
301.0
249.4
5 516
1 339.6
242.9
June
1 260
298.5
236.9
5 165
1 281.5
248.1
July
1 425
355.7
249.6
5 684
1 423.4
250.4
August
1 264
321.1
254.0
5 193
1 286.9
247.8
September
1 240
316.9
255.6
4 788
1 207.3
252.2
October
1 307
348.1
266.4
5 281
1 364.8
258.4
November
1 384
389.8
281.7
4 442
1 096.2
246.8
December
1 774
487.9
275.1
4 866
1 247.0
256.3
2009
January
1 613
455.4
282.3
4 234
1 074.4
253.7
(a) Excludes alterations and additions. Includes refinancing.
Source: Housing Finance, Australia, cat. no. 5609.0
  • The value of dwellings constructed for owner-occupation remained stable in the month of January 2009 after erratic behaviour in the previous eight months. However the value of new dwellings purchased for owner-occupation decreased just under 24% from December to January.
  • While the value of other established dwellings purchased by owner-occupiers also decreased in January, the proportional decline (just under 11%) was lower than for new dwellings. Through the year the value of established homes purchased for owner-occupation fell from just over $1 billion to around $800 million in January 2009.
  • The value of dwellings purchased by individuals for investment purposes fell by almost 21% in January 2009 after a small increase in the previous month. The value of $406 million for January 2009 is the lowest since January 2005.

27 Housing Finance Commitments(a), By purpose: Original
OWNER OCCUPATION (SECURED FINANCE)
INVESTMENT HOUSING(b)
Construction of dwellings
Purchase of new dwellings
Purchase of other established dwellings
Refinancing of established dwellings
Construction of dwellings for rent or resale
Purchase of dwellings by individuals for rent or release
Purchase of dwellings by others for rent or resale
Reference period
$m
$m
$m
$m
$m
$m
$m
2006-2007
2 311.2
1 224.6
12 973.4
6 939.6
404.2
9 511.9
717.1
2007-2008
2 270.0
969.9
12 609.9
6 354.3
444.0
8 476.6
841.7
2007
November
195.8
81.3
1 193.9
578.6
44.1
795.3
103.6
December
161.0
90.6
1 018.8
526.2
45.4
668.3
71.5
2008
January
188.1
58.2
1 048.8
498.1
18.3
626.2
56.6
February
181.9
70.7
1 035.9
525.3
31.5
643.4
69.8
March
170.0
56.7
916.9
487.0
np
557.1
37.3
April
188.5
54.3
944.6
529.8
np
624.3
68.8
May
202.2
54.2
863.5
520.7
48.5
634.6
60.6
June
181.8
66.0
821.3
510.9
81.9
697.5
124.2
July
236.4
65.9
895.7
581.0
105.9
622.4
73.8
August
196.6
61.4
819.7
530.3
69.1
584.1
60.9
September
180.4
62.5
813.7
467.6
41.0
563.0
43.2
October
202.9
64.7
937.0
508.4
np
632.3
33.1
November
172.2
57.7
789.3
466.9
66.7
489.3
26.5
December
195.5
67.2
929.1
543.1
95.3
513.8
57.3
2009
January
195.2
51.3
828.3
454.9
np
406.4
41.4
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Excludes alterations and additions. Includes refinancing.
(b) Excludes revolving credit.
Source: Housing Finance, Australia, cat. no. 5609.0; Lending Finance, Australia, cat. no. 5671.0.