A decline in new housing approvals has been matched by home loans for owner-occupiers hitting their lowest levels in two years.
The total number of dwellings approved fell 5.8 per cent in September, in seasonally adjusted terms, following a 23.1 per cent increase in August, according to data released by the Australian Bureau of Statistics (ABS).
Total housing approvals in Australia declined in South Australia (-19.7 per cent), Tasmania (-10.8 per cent), Western Australia (-9.3 per cent), New South Wales (-8.8 per cent), and Queensland (-6.2 per cent). Victoria was the only state to have an increase, with a 3.4 per cent rise.
Approvals for private sector residences declined in all states: Western Australia (-11.4 per cent), Queensland (-8.6 per cent), New South Wales (-7.9 per cent), Victoria (-4.7 per cent), and South Australia (-4.3 per cent).
“The fall in approvals was driven by private sector houses, which declined 7.8 per cent. Approvals for private sector dwellings excluding houses fell 1.8 per cent,” ABS Director of Construction Statistics Daniel Rossi said.
Total building approvals declined 6.9 per cent in September, following a 19.5 per cent increase in August. Total residential building approvals declined 12.7 per cent, with new residential building down 14 percent and modifications and additions falling 2.9 per cent.
The value of non-residential building approvals rose 3.7 per cent, after rising 11.5 per cent in August.
Loan commitments for new housing falls 8.2 per cent
Matching the fall in dwelling approvals, the value of new loan commitments for housing declined 8.2 percent to $25.1 billion in September 2022 (seasonally adjusted), following a 3.4 percent drop in August, according to the ABS.
“The value of new owner-occupier loan commitments fell by 9.3 per cent in September, while the value of new investor loan commitments fell 6.0 per cent,” Katherine Keenan, ABS Finance and Wealth Spokesperson, said.
“Although housing lending has fallen for four consecutive months, the value of loan commitments in September remained well above pre-pandemic levels. Owner-occupier loans in September were 23 per cent higher than in February 2020, while investor loans were 60 per cent higher.”
The number of fresh loan commitments to owner-occupier first-time buyers declined 8.3 per cent in September 2022, following a 10.4 per cent increase in August.
The drop was observed in all states and the Australian Capital Territory. The Northern Territory number remained unchanged from August. In recent months, first-time buyer loans have stayed significantly below the January 2021 peak and have been close to levels observed in 2019.
