The continuing strength in Australia’s property market has been underlined by data showing the value of new owner-occupier loan commitments rose 10.1% year-on-year in November 2023.
And the number of these new home loans increased by 7.3%.
These numbers from the Australian Bureau of Statistics indicate continuation of the strong sentiment that increased values by 8.1% across Australia last year.
The value of these loans issued last November was 18% higher than those taken 12 months previously, according to the ABS.
In seasonally adjusted terms, the value of new loan commitments rose to $27.6 billion and was 13.1% higher compared with a year ago.
For owner-occupiers, housing loans rose to $17.9b and were 10.1% higher compared to a year ago, while for investors, loans were up 1.9% to $9.7b. This was 18% higher than 12 months ago.
The ABS said the “growth in owner-occupier and investor lending seen through 2023 was driven by the three states with the largest populations: NSW, Victoria and Queensland. For both owner-occupiers and investors, NSW saw the most growth”.
The number of owners needing to refinance their mortgages is slowing despite the continuing high level of interest rates imposed by the Reserve Bank of Australia (RBA).
The November level was close to that seen in March 2022, before the RBA started its series of cash rate rises.
Meanwhile, the total number of dwellings approved rose 1.6% in November, following a 7.2% increase in October.
Apartments are driving this growth. If you exclude housing, the result would have been 5.1% higher at 6.7% as house approvals dropped 1.7%.
The ABS said total dwelling approvals were trending down this financial year. Some 70,900 dwellings were approved between July and November 2023, compared with 81,954 over the same period in 2022.
Total dwelling approvals increased in Victoria (+7.8%) and South Australia (+6%) but fell elsewhere.