The Australian Prudential Regulation Authority (APRA) released their September quarterly statistics on Authorised Deposit Taking Institutions (ADIs) exposure to the property market earlier this week.
This is the second release of this new data set and it is a welcome addition to information on both the banking and property market. The data showed that over the September 2013 quarter, ADIs with more than $1bn in term loans wrote 76,634 new loans to households. 65.7% of these loans were to owner occupiers, up from 64.8% over the June quarter with the remaining 34.3% to investors.
The proportion of total funds lent with a loan to value ratio (LVR) in excess of 80% increased from 32.7% over the June quarter to 34.7% in September, the highest proportion since the December 2011 quarter. [sam id=37 codes=’true’]
The quarterly data also showed an increase in the proportion of loans originated from third-parties (broker channels), up from 39.0% in June to 40.7% in September whilst the proportion of interest only loans fell from 38.7% in June to 37.3% in September.
Across these ADIs total loan book, a third of loans are outstanding to investors with two thirds being outstanding to owner occupiers. Across these outstanding loans 34.6% of outstanding funds were lent for the purposes of an interest-only loan which is a record high proportion having increased from 34.3% at the end of June.
Across all outstanding loans, the average balance is $231,200 loans with an off-set facility have a higher average outstanding balance ($278,800) as do outstanding interest-only mortgages ($293,900).
The Australian Bureau of Statistics (ABS) released data this week on the total value of construction work done over the September quarter.
Over the quarter, $53.4 billion in construction work was completed which represented a quarterly increase of 2.7% and a year-on-year increase of 1.3%. 60.8% of all work done over the quarter was engineering construction with 22.8% residential and 16.5% non-residential.
Year-on-year engineering construction work done has fallen by -0.7% compared to a 2.7% increase in residential construction and a 7.3% increase in non-residential construction.
National Auction Clearance Rates
The number of auctions across the combined capital cities fell slightly last week, down from 2,814 over the previous week to 2,716 auctions last week. The auction clearance rate fell over the week from 67.4% the previous week to 65.4% which was the lowest clearance rate in 17 weeks.
In Melbourne, there were 1,172 auctions over the week, down from 1,270 auctions over the previous week. Melbourne’s clearance rate fell from 69.0% the previous week to 65.1% last week which was also the lowest auction clearance rate in 18 weeks.
Auction volumes across Sydney fell slightly over the week from 1,099 the previous week to 1,060 last week. Auction clearance rates fell over the week from 75.3% the previous week to 74.0% last week, Sydney’s lowest auction clearance rate in 21 weeks. This week is set to be the busiest auction week on record with 3,212 capital city auctions scheduled to take place.
Weekly Advertised Listings
Over the four weeks to 24 November 2013, there were 51,701 newly advertised properties listed for sale nationally, the highest number since late November last year.
The number of new property listings increased by 1.5% over the week however, new listings remain -2.6% lower than at the same time last year. Across the combined capital cities, new listings were 1.7% higher over the week and are 1.4% higher than they were a year ago.
There are currently 264,373 properties listed for sale across the country. Total listings at a national level were virtually unchanged over the week and they are -8.9% lower than they were at the same time last year. Across the combined capital cities, total listings have fallen by -0.1% over the week and they are -14.1% lower than they were at this time a year ago. Capital city listings account for around 44% of all listings nationally.
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