Strong growth in the value of home loans through the year

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Released
3/05/2024
Source
Lending indicators, March 2024

The value of new housing loans rose 17.9 per cent since March 2023 to $27.6 billion, after a 3.1 per cent rise in the month, according to data released today by the Australian Bureau of Statistics (ABS).

Mish Tan, ABS head of finance statistics, said: “The value of new loan commitments is a product of the size of loans being approved and the volume of loans. The rise in the value of new home loans over the past year reflected increases in the average loan size, in line with rising house prices over the same period.

“Meanwhile, in original terms, the number of loans reaching the final commitment stage is broadly similar to a year ago.”

Comparing different buyers in the market, the value of investor loans rose 3.8 per cent in March to $10.2 billion, increasing 31.1 percent since March 2023.

Owner-occupier loans (excluding first home buyers) rose 2.1 per cent to $12.3 billion, increasing 8.8 per cent through the year. First home buyer loans rose 4.4 per cent to $5.2 billion, rising 17.9 per cent through the year.

“Since March 2023, there has been relatively strong growth in investor loans, with increases in both the number, by around 11 per cent, and the average loan size, up around 8 per cent, in original terms.

“This aligns with historically low vacancy rates over the same period, and CPI rental prices rising 7.8 per cent annually to March quarter 2024,” said Dr Tan.

Housing finance loan commitments by property purpose and state, seasonally adjusted – Mar 2024
 Aus *NSWVicQldSAWATasNTACT
Owner-occupiers 
 Value ($b) :17.55.44.93.61.01.90.30.080.3
 Value change ($m):47012697192271124110-80
 Value % change ** :2.82.42.05.62.86.317.8†13.6†-19.2†
Owner-occupier first home buyers 
 Number change:427-1117474-353618-94
 Number % change ** :4.5-0.55.84.2-5.92.812.9†-14.5†1.6
Investors 
 Value change ($m):36923641241953241
 Value % change ** :3.86.20.26.23.65.32.214.3†0.7

* Total Australia levels do not necessarily equal the sum of states, due to independent seasonal adjustment

** All movements are on a month-to-month basis

† A smaller and more volatile series

Personal finance

The value of new loan commitments for total fixed term personal finance rose 3.9 per cent to $2.6 billion. This was driven by a rise of 4.3 per cent in lending for the purchase of road vehicles.

More information is available in Lending Indicators, Australia.

Media notes

  • All figures are seasonally adjusted unless noted otherwise.
  • Lending Indicators reverted to concurrent seasonal adjustment in the October 2022 release. This method of seasonal adjustment will result in revisions to historical data each month. For more information, see the methodology page.
  • When reporting ABS data you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
  • For media requests and interviews, contact the ABS Media Team via media@abs.gov.au (8.30am-5pm AEST Mon-Fri).
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