The latest data from the Australian Bureau of Statistics (ABS) show that owner-occupier first-home buyer loans for August dipped 1.5 percent compared to July.
However, this slight decline contrasts sharply with a robust 9.2 percent increase from the same period last year, highlighting a strong year-on-year performance.
The data indicates that 9,869 first-home buyer loans were issued in August, with Queensland being the most significant contributor to the growth in these loans.
Mish Tan, ABS head of finance statistics, noted that much of the growth compared to 2023 came from Queensland.
“Despite this, Victoria continued to have nearly one-third of Australia’s first-home buyers,” Tan stated.
Several other reports have also highlighted a significant shift in the housing sector favouring Queensland, with Victoria struggling on the growth front. A CoreLogic report from August says migration patterns, new housing supply, and the types of dwellings in each city influence these changes.
“Over the past five years, cities like Perth, Brisbane, and Adelaide saw home values surge by 76.4 percent, 71.5 percent, and 70.8 percent respectively. In contrast, Melbourne’s values only rose by 19.8 percent, while Sydney saw a 43.1 percent increase.”
The report adds that demographic shifts, like interstate migration and a denser housing mix in Melbourne, have contributed to these disparities. Despite lower median dwelling values, Melbourne still has higher individual house and unit values.
Meanwhile, the ABS report argues that the decrease in first-home buyer loans coincides with a broader rise in housing loan activity. The total value of new housing loans rose by 1.0 percent in August, reaching $30.4 billion.
“This increase was largely driven by a 1.4 percent rise in investor loans, totalling $11.7 billion, marking a substantial 34.2 percent increase compared to August 2023 and nearing the peak levels recorded in January 2022. Owner-occupier loans also saw a modest rise of 0.7 percent to $18.7 billion, reflecting a 16.8 percent increase from the previous year.”
These trends suggest that while first-home buyer loans have experienced a slight dip in the short term, overall housing demand remains resilient.
The report also highlights a 2.0 percent rise in new loan commitments for fixed-term personal finance, coupled with a 15.3 percent increase year-on-year, indicating demand for personal loans in Australia.
This trend could have broader implications for consumer spending and the economy, as increased borrowing often leads to higher consumer expenditure, which may stimulate economic growth in the last quarter.
