The Australian Prudential Regulation Authority (APRA) released data earlier this week on Australian authorised deposit-taking institutions (ADIs) exposure to property.
Here are the key points:
- Of all outstanding mortgages held by Australian ADIs, 66.7% are to owner occupiers and 33.3% are to investors. 34.6% of all mortgages have an offset facility and 35.0% are interest-only mortgages.
- The average outstanding loan balance on a mortgage is $233,500 however, the average for loans with an offset facility is $280,000 and interest-only mortgages have an average amount owing of $295,300.
- Over the December 2013 quarter, 34.4% of loans written had a loan to value ratio (LVR) of more than 80%, 13.6% had an LVR of more than 90% and 20.8% had an LVR of between 80% and 90%.
The Australian Bureau of Statistics (ABS) released data on the value of construction work done over the December 2013 quarter earlier this week.
The data showed that the total value of work done fell by -1.0% over the quarter by was 0.2% higher over the year.
The value of residential construction fell by -1.7% over the quarter compared to a -1.5% fall in non-residential construction and a -0.5% fall in engineering construction.
Year-on-year, engineering construction is 0.1% higher, non-residential construction is 2.2% higher and residential construction is -1.0% lower.
The Reserve Bank has stated that they are looking for residential construction to lift as engineering construction linked to the mining sector is expected to fall over the coming years, given this, this week’s results are probably somewhat disappointing.
Residential construction accounted for just 22.8% of the total value of construction over the quarter, its lowest proportion since September 2012.
At its peak back in the June quarter of 2002, residential construction accounted for 50.2% of the value of all construction nationally; it seems unlikely to return to these heights however, we’re sure the RBA would like the proportion to rise from its current level.
Weekly Clearance Rates
There were 2,905 auctions held across the combined capital cities last week and the weighted average auction clearance rate was recorded at 76.2%.
On a capital city level, auction clearance rates have not been recorded this high since 2009. In comparison, over the previous week, there were 1,667 capital city auction with a clearance rate of 70.2%.
Across Melbourne, Australia’s largest auction market the auction clearance rate was recorded at 73.5% last week, up from 69.2% over the previous week.
The number of properties taken to auction also increased from 783 the previous week to 1,401 last week.
There were 1,101 Sydney properties taken to auction last week, with a clearance rate of 84.2%, up from 80.2% the previous week when 614 auctions were held in the city. Auction clearance rates in Sydney are at their highest level since September last year.
RP Data is expecting just over 2,500 auctions over the current week.
Weekly Advertised Listings
Over the four weeks to 23 February, there were 45,615 newly advertised properties listed for sale nationally.
The number of newly advertised property listings increased by 2.7% over the week and they are currently 4.8% higher than at the same time last year. Across the combined capital cities, new listings were 3.3% higher over the week and they were 6.2% higher than a year ago.
There are currently 246,058 properties listed for sale across the country. Total listings at a national level were 1.4% higher over the week but -2.5% lower than they were at the same time last year.
Across the combined capital cities, total listings have increased by 2.5% over the week and they are -9.2% lower than they were at this time a year ago. Capital city listings account for just 41% of all listings nationally.