This article is from the Australian Property Journal archive
NATIONAL home loan commitments lifted a modest 1.4% in the December quarter, while investor loans commitments fell for the first time since the middle of 2022 – the value was 30% higher than the previous year.
New Australian Bureau of Statistics (ABS) data showed there were 83,206 new home loans approved in the December quarter, a 2.2% rise compared to the previous quarter.
The value of new home loans approved for owner-occupiers was $54.8 billion, an increase of 4.2%, as the average loan size rose by $24,777 to $665,978. Upgrader and downsizer demand lifted 3.5%, outweighing first home buyers which grew a softer 1.5%.
“Demand for new home loans excluding refinancing rose throughout 2024, despite relatively strong growth in property prices,” said ABS head of finance statistics Mish Tan.
In original terms, the value of new home loans during the 2024 calendar year reached $205.7 billion. This was 13.6% higher than the $181.0 billion value of new loans in 2023.
The largest increases in value were in Queensland (up by 19.6%), Victoria (12.3%) and NSW (10.6%).
The total number of home loans refinanced between lenders in the December quarter was 61,749, a rise of 12% compared to the previous quarter, and followed a rise of 4.9% in the September quarter.
Total national home loan commitments lifted 1.4% in December quarter to $87.2 billion.
For the first time since June 2022, the value of investor lending fell in December last year, down 2.9% quarter-on-quarter, to $32.4 billion. Weighing on the result was 2,300 fewer investors than in the September quarter.
Despite the December quarter fall, the value of new investment loans during the 2024 calendar year reached $125.1 billion, 29.8% higher than the $96.4 billion value of new loans in 2023.
Maree Kilroy, Senior Economist for Oxford Economics Australia said the current loss of steam in Sydney and Melbourne property markets is expected to be sustained through the first half of 2025.
“Given their weight, they are dragging on the combined capital city all-dwelling price, which is expected to grow below 2% this financial year, while Australia’s housing undersupply will prevent an annual decline nationally.
“The strength of the other major markets continues, reflected in Queensland, South Australia and Western Australia average loan sizes continuing to grow solidly.”
