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October 31, 2023 by ash

Sunshine State home seekers give Qld loan values a boost.

Queensland loan values benefit from Sunshine State home seekers

In CommSec’s latest State of the State report, Queensland ranked highest in terms of loan value growth.

In order to determine which states have made the biggest gains over the past decade, the bank compared quarterly data for mortgage values (excluding refinancing) against its long-term average.

On average, home loan values have increased by 15.3 percent in the Sunshine State.

The next strongest state is South Australia, which has risen 14.9% against its long-term average. With a 10.4% rise, Tasmania comes in third, followed by Western Australia with a 10.2% increase. There has been an increase of 8.6 percent in loan commitments in Victoria, an increase of 8.2 percent in NSW, and a modest increase of 2.3 percent in the ACT.

Housing commitments in the Northern Territory are 10.4 percent lower than their decade-average.

Even with most states recording significant gains over the long term, after price drops in the past year and a dampened market, each state’s loan value has decreased over 2022’s numbers.

In Western Australia, lending has been hit the least, though it is still down 6.9 percent from last year. The lending market in South Australia is also relatively stable, with a decrease of only 7.7 percent.

NSW home loans are down 9.6 percent, Queensland’s are down 9.7 percent, Tasmania’s are down 13.9%, and Victoria’s are down 15.7%.

With loan values falling 26.4 percent and 27.3%, respectively, the ACT and NT have seen the biggest drops.

Despite everyone’s desire to buy in Queensland, it’s Tasmania that takes the lead when it comes to building.

In Q3, new dwelling commencements increased by 4.8 percent in Australia’s southernmost state, compared with its decade-long average.

As compared to their long-term histories, the rest of the states have experienced drops. However, new starts in Queensland remain 9.8 percent below their 10-year average.

South Australia and NSW placed third and fourth, respectively, with starts down 12.5% and 16.4%, respectively.

New starts in Victoria, the ACT, and Western Australia have all fallen by 21 percent, 32.8%, and 33.4% respectively. A 51.4 percent drop in new home construction has been reported in the NT over the past decade.

From an annual perspective, NSW is the only state to post gains in 2023. State starts have increased by 5.3 percent each year, while Queensland starts have decreased by 1.1 percent. There has been a 47.6 percent decline in starts in the ACT over the past year.