HSBCWinter Home Loans, 2014

9th of July 2014

HSBC Winter Home Loans 20142

Summary of ABS Statistics

- In trend terms, there are slight increases across the board in the total value of dwelling finance (0.4%); investment housing commitments (0.5%) and owner occupied housing commitments (0.4%).

- There are also increases in the number of owner occupied housing finance (0.1%), construction of dwellings (1.1%) and purchase of established dwellings (0.1%).

- Commitments for the purchase of new dwellings fell (-1.3%). - In original terms, first home buyer commitments (as a % of total owner

occupied housing finance commitments) fell 0.3% in April (from 12.6%) compared to March.

- To download the actual statistical report.

For April 2014

More Australians being excluded from the housing market

- A clear long term trend over the last 12 years has shown that a growing portion of Australian households (from 18 to 16 per cent) are being excluded from the housing market and do not own or intent to own their own home/an investment property.

- A multitude of factors can be attributed to this development including the decline in the number of households intending to purchase, a decrease in the demand for credit, moment easing on house prices and the growth of rental dwellings.

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June 2014

First home buyers at record low

- First home buyer loans have plunged to a record low (which was set last November); while investor loans have grown as first homers continue to lose ground to investors in Australia’s vexing property market.

- Part of the significant decrease has been in reaction to state governments scrapping the first home buyer grant for existing dwellings, thus pushing first homers into purchasing newly built homes.

- The market is seen to be dominated by investors and upgraders/downsizers. The expectation is that the loan market will remain flat due to the reaction to the federal budget, and generally weaker consumer confidence levels.

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June 2014

Small banks rule customer satisfaction

- A Roy Morgan consumer survey has found that consumer satisfaction with banks is at a record high of 82 per cent (Unchanged between April and May).

- Commonwealth bank and Nab recorded the highest scores with 82 per cent while National Australia Bank reached 80.7 per cent.

- What is interesting is that all of the major 4 banks mortgage customers have lower satisfaction levels compared to their non-mortgage customers.

- Even more interesting is the fact that almost all smaller banks have a rating higher than the rating of Commonwealth bank (some even getting up to 90%) and building societies rate even higher (up to 94.5%).

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June 2014

Chinese/Asian investors

- Favored investment destination

- Love sinking money into reliable assets like property, and Australia is only second the states as the most profitable place to invest.

- Top 1% of the country, investment to bypass regulation in China

- Long-term planning for retirement

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March 2014