28 June 2018
The Australian Prudential Regulation Authority ('APRA') recently released it's latest quarterly property exposure data for domestic and foreign Authorised Deposit-taking Institutions ('ADI's').

The Property exposures update - March quarter 2018 provides a snapshot of APRA's quarterly property exposures data on commercial and residential sectors and highlights the continued decline of new interest only home loans. 

 

Key insights

Interest only loans

New interest only home loan approvals are at their lowest level since reporting commenced, with the share of new interest only loans declining by 47% from March 2017 to be 20% of all new home loans issued for the past 12 months. 

Foreign bank branches

Commercial property exposures for foreign bank branches continue to rapidly increase, up 361% since December 2012. Foreign banks now represent 13% of total exposures at March 2018, up from 6% in March 2015. 

Development loans

Major bank actual exposures for land development/subdivisions continues to decline from the most recent peak in March 2017, with a 14% decline year-on-year.
 

To read the latest Property exposures update click the download button below.
Download PDF