Matthew Hassan, analyst at Westpac, notes that Australian housing finance approvals posted a really weak end to 2018 with sizeable declines throughout all parts because the headline variety of proprietor occupier loans fell 6.1%, a lot weaker than the consensus forecast of a 2% decline.
“Ex-refi, the variety of approvals have been down a hefty eight.2% within the last month of 2018, to be off 14.four% for the 12 months. Notably, what was initially an investor-led cycle is now seeing clear weak spot in proprietor occupier exercise – each the worth and variety of loans.”
“The mixed whole worth of housing finance approvals together with traders however excluding refi declined 5.9percentmth to be down 19.8percentyr.”
“Development finance approvals fared a bit higher, recording a 2.four% decline however nonetheless down over 10% for the total 12 months. Approvals for the acquisition of newly constructed dwellings, together with ‘off the plan condominium gross sales’ have been down extra sharply, –5.5percentmth, –20.2percentyr.”
“All up, the December finance approvals knowledge exhibits a really weak end to 2018 with weak spot coming throughout the board, confirming the message from different market measures.”