Australian banking sector property exposures and market update December quarter 2020
The Australian Prudential Regulation Authority (‘APRA’) recently released its quarterly property exposure data for domestic and foreign authorised deposit‑taking institutions (‘ADIs’). KordaMentha Property exposures update
01 Navigating a pandemic Managing commercial property lending risk Managing residential property lending risk An institutional investment view on residential property
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Navigating a pandemic
Resilience-led rebound We release our December quarter Banking on a strong financial system update amid the gathering pace of The Australian economy’s relative resilience during APRA-led initiatives targeting a Australia’s recovery from its first the pandemic has been due in no small part to the stronger, more resilient banking capacity of banks and other authorised deposit-taking recession in almost 30 years and institutions, or ‘ADIs’ (such as credit unions or building system have been vindicated, the commencement of the nation’s societies), to absorb $266.0 billion in deferred payments, with ADIs reporting high capital equal to over 10.0% of all lending arrears2. COVID-19 vaccine program. ratios, strong liquidity and APRA’s enhanced capital and credit control measures implemented in the years prior to the pandemic have funding positions for the December The 3.1% economic growth recorded in the December strengthened ADIs’ financial positions, such that lending quarter, despite the substantial quarter followed the robust 3.4% of the September activity and general liquidity has remained broadly 1 quarter . This marked the first time in the more than 60- unaffected. borrower support over the pandemic. year history of the National Accounts that GDP had risen by more than 3.0% in two consecutive quarters. The Highlights economy is now positioned to return to pre-COVID-19 7 ADIs demonstrated their resilience in the December Key ADI performance statistics levels during 2021, with the 7.0% collapse in the June quarter, with high capital ratios, strong liquidity and Operating metric* Dec 2019 Dec 2020 Change quarter almost recovered. Importantly, the rebound in funding positions. NPAT 4 (year-end) $33.7 $21.9 -35.0% economic activity has helped drive unemployment down to pre-pandemic levels1,3. Full-time jobs growth has led Total assets $4,981.5 $5,302.4 +6.4% the rebound, albeit weakness remains in the part-time Reduced bad or doubtful debts. Total capital base $329.0 $368.9 +12.1% employment category. Total RWA6 $2,089.6 $2,100.6 +0.5% *AUD billion This recovery has, however, been supported by Overall growth in loans and advances 5 elevated levels of fiscal and monetary policy stimulus. (albeit slow). Key ratios Dec 2019 Dec 2020 Change Consequently, the sustainability of the recovery will be Capital adequacy 15.7% 17.6% +1.9 pp Lending standards remain in line with contingent on diligent prudential supervision. Minimum liquidity 16.2% 20.2% +4.0 pp historical averages. holdings Liquidity coverage 131.5% 141.8% +10.3 pp
1 Australian Bureau of Statistics 5 Percentage points (difference between two percentages) 2 APRA Publication: APRA’s loan repayment deferral data: Shining a 6 Risk weighted assets light on credit risk; 2 December 2020 7 Aggregated financial performance, financial position, capital 3 KordaMentha research adequacy, asset quality, liquidity and key financial performance 4 Net profit after tax ratios at 31 December 2020
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The COVID-19 shock cushioned
APRA’s housing loan data provides useful insight into the health of the consumer and corporate sector; key drivers of broader property sector performance. The ongoing and significant reduction in loans subject to repayment deferral provides comfort that banks can remain viable and function normally, despite inevitable losses flowing from severe economic shocks.
Deferrals continue to decrease… But vigilance is needed
Temporary loan repayment deferrals have been steadily decreasing since the May 2020 We continue to caution that the post-COVID-19 economic recovery is likely to be uneven peak of over 10.0%, worth more than $250.0 billion, which housing loans make up over across industries and demographics, especially given imminent changes to key support 85.0%. measures, including loan deferral concessions and the JobKeeper program. In February, only 0.5% ($14.0 billion), of all loans were subject to repayment deferral, Low interest rates are expected to play an important role in ensuring the economic down from 1.4% in January 2021 and 3.3% in October 2020. Victoria has the highest recovery is as broad based as possible. However, noting the potential for inflated house proportion of deferred loans, at 0.7% compared with the rest of the county at 0.4%. prices, the Council of Financial Regulators – the coordinating body for Australia’s main financial regulatory agencies, of which APRA is one - has indicated that it would Key insights from deferrals consider possible responses should lending standards deteriorate and financial risks The strong rebound in economic activity has coincided with a significant and steady increase. decline in loan deferrals. Careful credit management needed for loans still subject to repayment deferral The risk profile of deferred loans is relatively high, with the proportion of loans with LVRs >90.0% and those to investors over-represented.
Loans subject to repayment Housing deferrals, share of Housing loan risk profiles1 Borrowers continuing to deferral housing loans by state make repayments2 $b Total deferrals (LHS) Aug Sep Oct Nov Dec Jan Feb Loan to value ratio >90% Interest only Investor Full repayments Partial repayments 300 Share of total loans (RHS) 12% 12% 40% 40% 250 10% 10% 30% 30% 200 8% 8% 150 6% 6% 20% 20% 100 4% 4% 10% 10% 50 2% 2% 0 0% 0% 0% 0% MarAprMayJun Jul AugSep Oct NovDecJan Feb VIC NSW WA QLD NT SA TAS ACT Deferred housing loands Total housing loands Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Source: APRA’s loan repayment deferral data: Shining a light on credit risk; 2 December 2020 1 Proportion of high risk loans among loans deferred v. proportion of high risk loans within total housing loans 2 Figures based on loans subject to repayment deferral
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Managing commercial property lending risk
Pandemic performance snapshot of two at-risk sectors
Retail Office Australian CBD prime yield forecast • Interestingly, the sharp COVID-19 recession is • Investment activity has improved since Q2 2020, Sydney Melbourne Brisbane Yield still yet to be reflected in the APRA ADI data, with however, transaction volumes are likely to remain Adelaide Perth Canberra December 2020 figures continuing to belie still relatively low over 2021. Nonetheless, Australia’s success (%) 8 constrained aggregate demand (+4.2% Y-on-Y and in managing the pandemic has enhanced its appeal +0.7% Q-on-Q). among offshore investors, with in-bound investment 7 during 2020 significantly above the long-term average 6 • Nonetheless, the tapering of extensive government of 35.0%. While Australia’s major office markets are still 5 stimulus that supported retailers throughout the recovering to pre-COVID occupancy levels (refer adjacent depths of the pandemic may lead to some volatility 4 chart) and there’s a future expectation of higher employee in retail sector lending activity over 2021, with 3 take up on ‘working from home’ opportunities, Australia’s weakness in valuations across some sub-sectors 2017 2018 2019 2020 2021 2022 2023 office markets are expected to remain a compelling (among other indicators) falling amid income investment opportunity relative to global peers. uncertainty. Further, a significantly lower number of retail transactions throughout 2020 has likely • The tapering of government stimulus, including the Office attendance rate masked wider market impacts. We continue to conclusion of the JobKeeper program in March 2021, will Dec-20 Jan-21 Feb-21 monitor this sector amid the COVID-19 vaccination plausibly see vacancy rise, with sub-lease space peaking % rollout that is so critical to the sector’s short and in 2021 that, in-turn, may draw more generous incentives 90 medium term trading conditions. and impart downward pressure on income. Experience 80 from past cycles suggests secondary grade assets are 70 60 Total retail property transaction volumes most exposed to excess space supply, which allows 50 tenants to ‘trade up’ to prime grade accommodation 40 AUD ($b) Australia New Zealand 30 12 commonly managed by institutional investors. 20 Consequently, prime grade assets may continue to be 10 10 0 priced on low yields, supporting valuation resilience. MEL1 SYD1 BRI CAN ADE HOB PER DAR 8 A-REITs have already provided evidence of this scenario in practice, with small increases in valuations reported 6 Source: (Above) PCA, Q4 2020 CBRE Office report, over the six months to 31 December 2020. End of Year Review: Jan- Nov 2020 Office Middle Market Colliers. 4 • Accessible and historically cheap debt remains a tailwind 1 Data is reflective of snap lockdowns in these cities 2 for the sector, with several A-REITs reporting reduced Source: (Left) JLL Research interest costs, with rates generally falling between 3.0% 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 to 4.0% across the sector.
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Managing residential property lending risk
Stimulus-led residential rebound
The performance of Australia’s residential markets has Detached-housing1 increase in Melbourne. Reflecting the asymmetric been closely linked to health outcomes and the severity impact of COVID-19 around Australia, Darwin, Canberra of lockdowns. More specifically, the varying speeds of The detached housing sector is emerging from COVID-19 and Hobart recorded substantial increases of 16.3%, recovery across geographies, along with the detached in a stronger position across most capital cities amid low 13.9% and 12.8% respectively. and higher density sub-sectors, appears to be reflecting interest rates and stimulatory policy settings. Recent the profound impact the pandemic has had on people’s CoreLogic data shows that detached house values Multi-dwelling properties2 way of life. Aided by substantial stimulus, first home across Sydney, Melbourne, Brisbane, Adelaide and Unit values across Australia fell during 2020, amid buyers and empty nesters are still active with high levels Perth rose by an aggregate of 5.7% for the 12 months pandemic-induced weak rental market conditions, low of enquiry for good quality product. ended 31 March 2021, notwithstanding a modest 0.36% levels of investment activity and substantially reduced migration. A rise in new loans to investors indicates a recovery is underway, however, a sustained nationwide CoreLogic Home Value Index – Monthly Indices (31 March 2021) rise in sales and settlement volumes depends on the performance of the Melbourne and Sydney markets, All dwellings Detached houses Multi residential in particular, the return of foreign investment and City % change MoM % change YoY % change MoM % change YoY % change MoM % change YoY migration to pre-COVID-19 levels. We note Melbourne is emerging from a position of particular weakness, with Sydney 3.68 5.43 4.32 7.72 2.41 0.16 off-the-plan (‘OTP’) apartment volumes for a six-month Melbourne 2.37 0.66 2.59 0.36 1.73 0.88 period falling to their lowest level since 2006 – only Brisbane 1,607 units released across 22 projects3 in a city of 2.50 8.22 2.81 9.07 1.36 5.20 (inc. Gold Coast) more than five million residents. Less tangible factors, Adelaide 1.51 8.58 1.64 9.15 0.60 5.08 including changing lifestyle preferences and working Perth 1.80 6.03 1.81 6.30 1.72 3.95 arrangements, in addition to further policy support for the nascent build to rent sector, will also guide the pace Five capital 2.83 4.45 3.15 5.71 1.85 0.85 and pattern of the recovery. city aggregate Brisbane 2.35 6.84 2.64 7.91 0.96 1.91 1 Free-standing residential building Darwin 2.31 14.19 1.91 16.31 3.35 9.83 2 Low, mid and high-rise residential apartment buildings Canberra 2.79 12.10 3.34 13.88 0.71 5.76 3 Source: Charter Insight; COVID-19 Impacts to Date Off-The-Plan Apartment Sales and Settlement Risk Hobart 3.31 12.49 2.97 12.83 4.90 11.24
Source: CoreLogic
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An institutional investment view on residential property
Established and broadacre development strength • Consistent with the high number of land sales levels achieved, the increased activity in the residential construction sector has driven high volumes of building contracts • Major developers are attributing record sales to federal stimulus measures, including for home builders. With surging demand, supply side cost pressures are mounting, HomeBuilder, in addition to state based programs, bringing forward first home buyer putting at risk builder margins and consequently, the pace of recovery. Bricklayer demand. Land developer and syndicator, Peet Limited (‘Peet’), reported a 50.0% rates for standard homes are reportedly up to 20.0% higher than since the beginning increase in sales growth across its national portfolio during the first half of FY21, of the pandemic. whilst Stockland, broadly considered Australia’s largest house and land developer, recorded its strongest sales result in four years. With the pull forward of buyer HomeBuilder program activity, a post stimulus fall in demand would appear possible, as developers focus on converting lot sales to settlements in the more affordable buyer segments. • HomeBuilder is a stimulatory program that was implemented in June 2020 as part of the federal government’s economic response to the COVID-19 pandemic and • Institutional parties are increasingly pursuing the divestment of non-core assets provides eligible owner occupiers with a grant of $25,000 to build a new home or to recycle capital and fund larger land parcel acquisitions in key growth corridors, substantially renovate an existing home. The program was initially due to end on leveraging ‘economies of scale’ in residential lot production. For example, Peet has 31 December 2020, but in late 2020, was extended for an additional three months (to commenced a $75 million divestment program with $39 million of non-core assets 31 March 2021), albeit at a reduced amount of $15,000 and with various changes to already under contract at December 2020, with these settlements targeted over the the eligibility requirements. course of 2021.
Stockland – monthly enquiries (residential) Stockland – net sales by quarter (residential) Total HomeBuilder applications – as of 12 March 21
No. of No. of enquiries sales State New build Renovation Total 14,000 2,500 New South Wales 10,966 5,693 16,659 12,000 Victoria 21,980 4,878 26,858 2,000 10,000 Queensland 16,891 3,658 20,549
8,000 1,500 Western Australia 13,208 1,039 14,247 South Australia 7,911 1,813 9,724 6,000 1,000 Tasmania 2,308 432 2,740 4,000 500 ACT 1,683 598 2,281 2,000 Northern Territory 309 36 345 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Total 75,256 18,147 93,403 20 20 20 20 20 20 20 20 20 20 20 20 21 18 18 18 19 19 19 19 20 20 20 20 21 21
Source: Australian Government – Source: Stockland 1H21 Results Presentation The Treasury
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An institutional investment view on residential property
Medium and high-density development challenged Mirvac has a development pipeline of ~2,200 BTR apartments, with the potential to grow to a portfolio of ~5,000 apartments over the medium term. • A restricted investor market from the onset of COVID-19 has corresponded with lower settlement conversions of OTP apartments across major developers. Mirvac development pipeline Metropolitan projects with high exposure to Foreign Investment Review Board sq.m (‘FIRB’) buyers have been particularly affected, with delays in FIRB finance (net leasable area) Mixed-use/precinct Build to rent Industrial Office Retail Forecast processing contributing to higher default rates across Melbourne and Sydney. 300,000 Examples include delays in settlements at Lendlease’s (‘LLC’) Melbourne Quarter
project, for which LLC highlighted elevated levels of unsold stock. A-REIT peer, 200,000 Mirvac (‘MGR’), also indicated more difficult settlement conditions for its major Olympic Park project in Sydney during its first half FY21 results announcement in February. Measures to hedge increased sales risk for major developers include 100,000 material price reductions, coupled with financial incentives such as, stamp duty concessions, rental guarantees and specification upgrades. 0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26+ • The heightened settlement risk profile, as well as compressing yields in traditional core commercial sectors, has compelled several institutions to pursue the build to Source: Mirvac 1H21 Results Presentation rent (‘BTR’) model, in which developers retain the developed stock and draw regular income from rental and adjacent resident services. While various policy settings Lendlease’s project revenue for ‘Apartments for Rent’ (BTR) globally is ~22.0% of total have limited its growth in Australia relative to the rest of the world, the model is development work secured, equating to ~$24.3 billion. drawing increasing government support, including 50.0% land tax discounts offered by the New South Wales and Victorian governments. HY21 pipeline by product Apartments for rent ($b)
Communities In delivery • Evidence of the model’s appeal among residents is emerging from one of the first Apartment movers in the Australian BTR market, MGR. MGR has reported that apartment for sale $2.1b WIP 12% 9% stock retained for BTR in its Sydney Olympic Park project is achieving ~20.0% rental premium to that of stock sold to third parties. MGR has nominated a further 38% ~2,200 apartments within its BTR business, whilst LLC has a backlog of ~19,000 28% apartments globally to be delivered under a BTR structure over the next five to 10 years. 22% 91% Remaining Apartment for rent
Source: Lendlease HY21 Financial Results Presentation
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02 ADIs’ overall property exposure Commercial sector Residential sector Lender composition
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ADIs’ overall property exposure
Commercial Commercial property exposure by sector • ADIs grew their exposures to commercial property by 4.4% over the 12 months to December 2020; a more subdued growth rate compared with previous years. Office Retail Industrial Land Other residential Tourism and Leisure Other Exposure growth was once again supported by the increase in lending to the Millions Industrial property sector, which grew 10.2% year on year. Current $350,000 $302.72 billion Peak (Dec 2020) • While up strongly year-on-year, industrial exposure fell 0.9% in the December $300,000 $248.98 billion quarter, which was the first quarter-on-quarter decrease since September 2017. (Mar 2009) 9% $250,000 4% 11% Nonetheless, the fundamentals of the sector remain strong, suggesting lending 4% $200,000 growth may return in the short term. 9% 14% $150,000 12% 26% • December quarter data once again demonstrated the resilience of the Australian 18% $100,000 financial system, with ADIs increasing their exposures to sectors most sensitive to lockdown measures. Exposures to the Tourism and Leisure, Retail and Office sectors $50,000 27% 32% 0 rose 13.1%, 4.2% and 4.8% respectively over the year to December 2020. Dec Dec Dec Dec Dec Dec Dec 2008 2010 2012 2014 2016 2018 2020 • While year-on-year growth was resilient, ADIs’ Tourism and Leisure exposure decreased 0.4% in the December quarter; a significant change from the 5.0% growth recorded in the September quarter. Results of Tourism and Leisure have remained fairly robust throughout the COVID-19 pandemic, however, this is the first drop in exposures since December 2019. Whilst this result is only minor, we note this may be an early sign of the supply cycle correcting post the pandemic.
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ADIs’ overall property exposure
Residential New residential loans approved per quarter by LVR • Interest-only exposures fell a further 19.4% in the December quarter, following a 21.0% fall in the September quarter. This fall corresponds with APRA’s tightening of restrictions in 2017, which targeted interest-only loan lending – interest only loans ≤60% LVR 60%
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Commercial sector
Aggregate exposure limits Commercial sector exposure • Aggregate commercial property exposure continues to grow substantially above the previous peak of March 2009 (now 21.6% above). Exposures rose slightly (+0.1%) Q-o-Q (Dec20) Q-o-Q (Sep20) Y-o-Y (Dec20) over the December quarter, albeit more slowly than the 0.5% rise in September quarter. All commercial 0.1% 0.5% 4.4% • ADIs lifted their exposure to the Retail sector over the December quarter (+0.7%) Office 1.6% 1.3% 4.8% following two consecutive negative quarters amid structural challenges in the sector. Retail 0.7% (0.9%) 4.2% Despite the slight improvement during the quarter, we do not anticipate a return of Industrial (0.9%) 2.3% 10.2% sustained robust exposure growth in the short to medium term. Land (1.8%) 0.5% 3.9% • Industrial exposure slipped 0.9% over the December quarter, following 12 Other residential (0.9%) (1.5%) (4.5)% consecutive quarters of growth. Nonetheless, ADIs’ exposure to the sector is 10.2% Tourism and leisure (0.4%) 5.0% 13.1% higher than in December 2019; double that of the year to December 2010 (5.3%). Given this marginal change and the strength of the sector’s fundamentals, we do not Other (2.6%) (0.5%) 3.4% feel it indicates the start of a downward trend.
• Tourism and Leisure exposure dropped 0.4% across the December quarter for the Commercial sector peak exposure first time in 12 months. This potentially reflects the absorption of recently completed Change since 2009 peak stock across the country (namely in Sydney and Melbourne). We will continue to monitor how ADIs’ exposure to this sector changes as sentiment toward domestic Office 48.6% and in-bound tourism improves over time with the global vaccine rollout. Retail 78.5% • Lenders continue to decrease their exposure to Other Residential (apartments and high-density accommodation), with a further 0.9% drop across the quarter, Industrial 39.6% contributing to the largest year-on-year fall of all sectors (-4.5%). This is consistent Land developments/subdivisions (42.3%) with weakness in sales and settlement return reported by major developers across Other residential (17.5%) key capital city markets (refer section 1, page 8). Tourism and leisure 14.0% • Land Developments/Subdivision exposure continues to represent the second smallest exposure by sector following Tourism and Leisure, decreasing 1.8% in the Other (26.0%) December quarter following a marginal increase in the previous quarter. As noted in section 1, trending conditions have been uneven throughout the pandemic.
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Residential sector
• New residential mortgage lending increased 1.4%. The recent increases may be an Key insights indication of borrowers’ general confidence despite some limited supply during the Q-o-Q (Dec20) Y-o-Y (Dec20) Y-o-Y (Dec19) months hardest hit by COVID-19. Residential term loans growth +1.4% +3.8% +6.8% • New interest-only loan growth increased considerably across the December 2020 Dec20 Sep20 Dec19 Peak Sep15 quarter (+17.1%), adding to a significant 31.2% increase across the year. This may Investor share of lending 34.1% 34.5% 35.8% 38.0% be a continued reflection of increased refinance activity over the last 18 months, as interest rates hit record lows and the COVID-19 recession compelled borrowers to Y-o-Y (Dec20) Y-o-Y (Sep20) Y-o-Y (Dec19) review their financial positions. New interest-only loans as a proportion of total +31.2% +20.8% +34.8% • Interest-only loans as a proportion of lenders’ overall residential exposures continued residential exposures to fall despite another sizeable increase in new interest-only lending year-on-year. Y-o-Y (Dec20) Y-o-Y (Sep20) Y-o-Y (Dec19) (Sep15) Another substantial 19.4% drop in interest-only term loan exposure across the year Lenders’ proportionate exposure 19.3% 18.7% 18.0% 41% to December 2020 highlights lenders’ preference for principal and interest loans to interest-only loans following APRA’s policy changes in 2017 (refer to page 11). Y-o-Y (Dec20) Y-o-Y (Sep20) Y-o-Y (Dec19) Proportion of highly leveraged • Balances held in offset accounts increased 18.0% across the year, despite slower 42.0% 39.9% 37.2% growth in the December 2020 quarter (+3.8%) compared with the previous quarter new housing loans (+9.2%). It is likely already low interest rates, coupled with extended lockdowns, travel restrictions and Government stimulus measures have driven this increase. Aggregate residential property exposure by type
Owner-occupied Investment Millions Y-to-Y Y-to-Y +3.8% +4.1% $1,800,000
$1,500,000 33% 36% 34% $1,200,000
$900,000
$600,000
$300,000 66% 64% 66% 0 Dec Mar Jun Sep Dec Mar Jun Sep Dec 2018 2019 2019 2019 2019 2020 2020 2020 2020
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Lender composition Commercial property exposures by lender group
Major banks Other domestic banks Foreign subsidiary banks Foreign branch banks • Major Australian banks still dominate the lending market, making up almost 80.0% Millions of commercial and residential loans. $350,000
• Foreign banks’ share of Australian commercial property loans continues to grow at $300,000
a robust annualised rate of 20.9%, with actual exposures now 4.2 times higher than $250,000 the post GFC low in March 2013. $200,000
• Despite increases in impairments year-on-year, numbers in absolute terms remain $150,000 low and provisioning appears appropriate for the level of impairments, unlike in the $100,000 lead up to and during the GFC. Nonetheless, there will be heightened vigilance over $50,000 COVID-19 legacy risks and the unwinding of substantial stimulus programs over the 0 next 12 months. Dec Dec Dec Dec Dec Dec Dec Dec Dec 2004 2006 2008 2010 2012 2014 2016 2018 2020
Foreign branch banks’ share of commercial lending
Office Retail Industrial Land Other residential Tourism and Leisure Other
Millions Current $60,000 $62.34 billion (Dec 2020) $50,000
$40,000 Peak $30,000 $20.40 billion (Dec 2008) $20,000
$10,000
0 Dec Dec Dec Dec Dec Dec Dec 2008 2010 2012 2014 2016 2018 2020
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Notes
APRA Revisions Further information KordaMentha Real Estate key contacts December Quarter 2020 APRA’s ‘Quarterly ADI Property Exposures’ contains Tom Davis information on ADIs’ commercial property exposures, Partner | Melbourne No institutions resubmitted data to APRA. residential property exposures and new housing loan [email protected] The December edition of the Quarterly ADI Property approvals. +61 3 8623 3449 Exposures publication includes revisions to previously Further information including explanatory notes and an published statistics, due to better source data extended glossary can be found at: apra.gov.au Berrick Wilson becoming available. Partner | Melbourne In 2017, APRA announced that Reporting Form ARF Notes [email protected] 320.8 Housing Finance Reconciliation, (ARF 320.8) +61 3 8623 3322 Commercial property sectors: would cease after the September 2019 reporting period as part of the implementation of the Economic and • Development: Land development/subdivisions. Paul Mirams Financial Statistics data collection. APRA now source Partner | Sydney • Other residential: Excludes loans to individuals or its residential property exposures and new housing loan families, loans to private family companies or trusts [email protected] approvals from Reporting Form ARF 223.0 Residential for owner-occupation. +61 2 8257 3067 Mortgage Lending (ARF 223.0). As a result QPEX will contain more detailed aggregated data on residential • Other: All other loans for the acquisition of Brad Bennett property exposures and new housing loan approvals than commercial property not included in remaining Partner | Brisbane were previously published. categories. [email protected] +61 7 3338 0242 Commercial property exposure limits: • The aggregate of all claims, commitments and Sam Woods contingent liabilities arising from on and off balance Executive Director | Perth sheet transactions with the lender counterparty, [email protected] i.e. includes outstanding balances and undrawn +61 8 9220 9306 commitments. • Commercial property exposures include offshore interests, which represent ~15% (i.e. 85% of loans against Australian assets).
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Contacts
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