APRA stats shine light on ADI's property exposures
The Australian Prudential Regulation Authority yesterday released its statistics on authorised deposit-taking institution property exposures for the September 2017 quarter. This report covers Australian ADIs' commercial property exposures, residential property exposures and new housing loan approvals. Detailed statistics on residential property exposures and new housing loan approvals were released for ADIs with greater than A$1 billion in housing loans. The stats for ADIs with greater than $1 billion in housing loans show that new home loans approved in the September quarter hit A$98.2 billion, an increase of 3.3 per cent over the same quarter last year (up from $95.0 billion). Over the same period, the average housing loan balance lifted 4.3 per cent to $264,300, while total domestic housing loans hit $1,553.6 billion, an increase of 6.9 per cent on the comparable quarter in 2016. The total was split into owner-occupied loans, which were $1,018 billion (65 per cent of total, and an increase of 7.9 per cent from September 2016); and investor loans of $535.3 billion (35 per cent of the total, and an increase of $25.5 billion or five per cent from September 2016). The major banks continued to dominate in residential term loans to households, with owner-occupiers holding $803,407 million; investment loans totalled $449,213 million - ie, almost $1.3 trillion out of a total of just over $1.55 trillion. Martin North, the principal of Digital Finance Analytics, came to the same conclusion, noting that "investment loan volumes have fallen, though major banks still have the largest relative share, above 30 per cent [while] mutuals are sitting at around 10 per cent."