This article is from the Australian Property Journal archive
RISING house prices and the spectre of higher interest rates have spooked residential property investors.
According to the latest Australian Bureau of Statistics figures, the value of investor housing finance commitments recorded a sharp 3.9% fall during the month and is 3.9% lower than in August 2009.
The value of total housing finance commitments fell 1.3% (1.9% lower excluding refinancing) as demand from owner-occupier were flat for the month, down 0.7% excluding refinancing. In annual terms, the trend value of owner-occupier commitments excluding refinancing remained 22.6% lower than in August 2009.
However the number of owner-occupied housing finance commitments increased by 1.0% and the number of commitments by the upgrader segment rose 1.4% whilst first home buyer demand were lower (down 0.4%).
ANZ economist David Cannington said whilst housing finance commitments taken out by the owner-occupier segment continues to stabilise, recent slowing in investor segment finance activity shows housing investors remain cautious with weak growth in house prices and expectations of further rate hikes.
“Nonetheless, with continued solid data releases for the labour market and retail sales we expect to see housing finance for owner-occupiers continue to stabilise,” he added.
Meanwhile first home buyers share of the total number of housing finance commitments was slightly weaker at 22.3% compared to 22.6% in July.
The proportion of total housing finance commitments taken out at fixed rates decreased to 3.4% in August (from 3.6% in June).
Across states and territories the number of owner-occupier housing finance commitments increased most in Northern Territory (+15.6% in August), followed by Victoria (+1.9% in August) and New South Wales (+1.5% in August). In annual seasonally adjusted terms, the largest fall in owner-occupier commitments was in the Queensland (down 31.2%), followed by South Australia (down 30.9%).
Although the value of construction finance commitments in seasonally adjusted terms was higher (+7.2%), it remains lower in annual terms (down 8.3% compared to August 2009).
Australian Property Journal
