MNI Australia Investor Housing Loans Drop For 5 Straight Mths

--Owner-Occupier Housing Loans Up In July, But Trend Negative For 10 Months

By Sophia Rodrigues

     SYDNEY (MNI) - The number of owner-occupier home loans rose in July but

investment housing loans dropped for the fifth straight month, indicating

investors continue to shy away from housing investment amid tighter lending

conditions and weaker housing prices.

     The data suggest the risk is tilted towards further weakness in the housing

market.

     Data published by the Australian Bureau of Statistics Wednesday showed the

number of owner-occupier mortgages rose 0.4% m/m in July, following a revised

0.8% drop in June. The outcome was higher than MNI median forecast for a flat

result.

     In value terms, owner-occupier mortgages rose 1.3% m/m in July, rebounding

from a 0.9% fall the month before. The 1.3% m/m rise was the biggest since

November last year.

     Investment housing loans, however, fell 1.3% m/m, dropping for the fifth

straight month. 

     In trend terms, the number of owner-occupier loans was negative for ten

straight months, though the pace improved to -0.2% in July from -1.1% at the

start of the year.

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

Statistics on Friday:

                                                    July                    June

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

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

                                               adjusted)               adjusted)

Number of Owner-Occupied Dwelling                             -0.8 (revised from

Commitments                                         +0.4                   -1.1)

                                      0.0 (range -1.0 to

MNI Median Consensus                               +1.0)

-Construction of Dwellings                          +0.6                    +2.7

-Purchase of New Dwellings                          -2.2                    -4.7

-Purchase of Established

Dwellings                                           +0.6                    -1.0

Value of Dwelling Commitments                       +0.4                    -1.5

-Owner occupied housing                             +1.3                    -0.9

-Investment housing                                 -1.3                    -2.6

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

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