Housng Approval

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EXPERT OBSERVATION
The fall in housing finance in March is not surprising, given that we already knew that March was a weak month for the housing market. We will continue to watch developments in the availability of credit very closely. 
Any further tightening in credit conditions could imply further weakness in the housing market, and would challenge our current view of mild house price growth by the end of the year.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure0.jpg" target="_blank">to enlarge.</a>
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The value of Australian housing finance commitments fell heavily in March, with the investor segment driving the decline at -9% m/m. This is the weakest monthly result for investor borrowing since September 2015, when APRA’s macroprudential policy limiting lending to investors was in full effect.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure1.jpg" target="_blank">to enlarge.</a>
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/11/figure1.jpg" alt="">
On the previous occasion, the owner-occupier segment offset much of the investor weakness, but that was not the case in March.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure2.jpg" target="_blank">to enlarge.</a>
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The drop in investor borrowing means that investors only accounted for 42% of transactions nationwide – the lowest level since 2012. While this result predates APRA’s recent decision to remove the 10% ‘speed limit’ on investor borrowing, it is hard to see a re-acceleration in the investor segment with sentiment clearly subdued. Having said that, recent announcements from several banks have seen some cuts to investor mortgage rates, which could help ensure such a sharp drop in borrowing is not repeated.
Click here <a href="https://www.propertyobserver.com.au/images/2018/5/11/figure3.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/11/figure3.jpg" alt="">
Elsewhere, the finance for new dwellings has started to trend lower, which suggests that the recent rise in building approvals will soon run out of steam. This won’t affect our construction outlook though, as a large backlog of work will still support activity this year. Finally, it looks like the flood of first home buyers, driven by New South Wales and Victorian stamp duty discounts, is past the peak.
Daniel Gradwell is a senior economist at ANZ.
  
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jrobinson-rf4aSBido9

March fall in housing finance unsurprising: ANZ 

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The New South Wales government is shooting for a target of 90% of housing approvals processed within 40 days however will need a better planning system to achieve this, according to the Property Council of Australia.
The state government outlined the possibility of the new accountability framework this week.
Property Council of Australia executive director Glenn Byres said reaching the 40-day target will require a quantum leap forward in culture, process and practice, particularly for multi-unit residential projects now common in the market.
“The Government's own data makes clear the average determination time for residential development applications is currently 65 days," he said.
"We know Sydney is forecast to have a housing supply deficit of 190,000 by 2024 without action – and reducing the time and cost of bringing new homes to market is part of the fix.
“This requires swifter pathways for all housing but there needs to be a particular emphasis on multi-unit residential given the urban renewal occurring in Sydney."
 
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