MNI ANALYSIS:Australia Investor Mortgages Dn Most Since Sep'15

By Sophia Rodrigues

     SYDNEY (MNI) - The value of loans for investor housing fell sharply in

March to mark the biggest decline since September 2015 as the financial

regulator's measures to slow the pace of investment housing continues to show

its impact.

     The data vindicates the Australian Prudential Regulator Authority (APRA)

announcement last month of a conditional removal of the 10% investor mortgage

growth limit. 

     However, given there are conditions related to tighter credit standards

still attached to the removal of the cap, it is unclear whether this would lead

to a resurgence in investment housing finance. 

     Data published by the Australian Bureau of Statistics Friday showed the

value of loans for investment housing fell 9.0% m/m in March, the largest fall

since the 10.4% decline in September 2015. 

     The data also showed the number of loans for owner-occupier dwellings fell

in March to mark four straight months of decline.

     In trend terms, the number of loans fell 0.7% m/m in March, down for six

straight months. The decline was due to fall in all the three categories of

owner-occupier mortgages.

     From Housing Finance data for March published by the Australian Bureau of

Statistics on Tuesday:

                                                   March                February

--------------------------------------------------------------------------------

                                      (M/M %, seasonally      (M/M %, seasonally

                                               adjusted)               adjusted)

Number of Owner-Occupied Dwelling

Commitments                                         -2.2      -0.2 (no revision)

MNI Median Consensus                                -2.0

-Construction of Dwellings                          -4.4                    -7.2

-Purchase of New Dwellings                          -1.4                    +6.3

-Purchase of Established

Dwellings                                           -1.9                    +0.3

Value of Dwelling Commitments                       -4.4                    +1.2

-Owner occupied housing                             -1.9                    +1.2

-Investment housing                                 -9.0                    +1.2

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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