The number of first home buyers increased by 7.3 per cent during the quarter, a year on year increase of 20.6 per cent compared with the June quarter 2017.    Rental affordability improved with the proportion of income required to meet average rental payments decreasing to 24.1 per cent – or a quarterly decrease of 0.7 percentage points.

Darren Kasehagen, Head of Distribution, Adelaide Bank said: “The number of first home buyers continues to climb and now stands at 20.6% of the market, driven by Victoria and NSW.  31.7% of FHB’s were from Victoria, while 25.5% were from NSW.   The ACT was the only market to experience a decline.  The average loan size to FHB’s nationally has increased to $345,700.

“The total number of new loans for the June quarter, excluding refinancing, increased by 8.3 per cent, but compared to the same quarter last year we have seen an overall decrease of 3.8%.  The average loan size for all borrowers now stands at $409,900, an increase of 3.3% over the quarter or 6.0% year on year.

“Rental affordability has improved everywhere – except the ACT and NT.  The decreases in rental affordability were led by NSW with a drop in rental payments of 1.3% for the quarter, while Queensland has seen the greatest improvement in rents year on year.

“Western Australia retained the crown as the State where rents require the lowest proportion of family income, with just 16.3% needed to meet the median rent, a figure that has remained relatively stable for the past year.

“At Adelaide Bank, we are open for business and looking to help borrowers across all states and territories in all market segments – be they first time buyers, existing customers, owner occupiers or investors.  Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Kasehagen concluded.

Fast Facts: Across the nation

Victoria:

Of the total number of Australian first home buyers that purchased during the June quarter, 9,010 were from Victoria. The number of loans to first home buyers increased by 10.3% for the quarter or 35.5 increased 35.3% year on year. 31.7% of first home buyers now come from Victoria.  Rental affordability improved slightly with a 0.5% decrease for the quarter with 23.3% of income required to meet median rents.

NSW:

The proportion of family income required to meet loan repayments increased by 1.6% to 38.1%. New South Wales remains the least affordable State or Territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the March quarter, 25.5% were from New South Wales. First home buyers now comprise 22.2% of the State’s owner-occupier market. Rental affordability improved for the quarter with a decrease of 1.3.4%. 28.8% of income is now required to meet median rents.

Queensland:

The proportion of income required to meet home loan repayments increased to 28.1%, a 0.6% increase over the quarter. Of all Australian first home buyers 20.4% were from Queensland – an increase of 2.6%.   The proportion of first home buyers in the State’s owner-occupier market was 26.7%. Rental affordability improved with a decrease of 0.9% to 22.2% of income required to meet median rents.

South Australia:

South Australia recorded an improvement in housing affordability with the proportion of income required to meet monthly loan repayments decreasing to 27.0% or 0.2% over the quarter.  In the national breakdown, 5.1% of first home buyers were from South Australia,  while the proportion of first home buyers in the State’s owner-occupier market was 21.1%.  Rental affordability improved by 0.4 percentage points to 22% of income.

Western Australia:

The number of first home buyers in Western Australia increased by 4.8% over the quarter.  13.2% of all Australian first home buyers were from Western Australia. Housing affordability declined with the proportion of income required to meet loan repayments increasing slightly to 23.9%. This was a 0.3 percentage point increase.  Rental affordability remained unchanged at 16.3% of income, a year on year decrease of 0.5%.

Tasmania:

Housing affordability in Tasmania declined with the proportion of income required to meet home loan repayments increasing to 25.4%, an increase of 0.9 percentage points over the quarter or 1.5%.  Rental affordability in Tasmania improved with the proportion of income required to meet median rents decreasing to 27.6%, a 0.5% decrease or 1.5% year on year.  First home buyers in Tasmania increased by 9.0% over the quarter and by 20.5% year on year.

Australian Capital Territory:

Housing affordability in the Australian Capital Territory declined with the proportion of income required to meet home loan repayments increasing to 20.9%, a 1.2% increase over the quarter and an increase of 1.1% year on year. Rental affordability also declined slightly.  The proportion of income required to meet the median rent is now 18.6%, an increase of 0.1% for the quarter or 0.7% year on year.

Northern  Territory:

Housing affordability in the Northern Territory declined with the proportion of income required to meet loan repayments increasing to 21.5% for the quarter or 1.7%.  This was an increase of 1.2 % year on year.     Rental affordability in the Northern Territory declined slightly  with the proportion of income required to meet the median rent increasing to 22.6% or 0.1 percentage points over the quarter. This was a decrease of 0.5% year on year.

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The number of first home buyers decreased by 14.5 per cent during the quarter, but year on year there was actually a 28% increase compared with the March quarter 2017.

Rental affordability declined slightly with the proportion of income required to meet average rental payments increasing to 24.8% or a quarterly increase of 0.3 percentage points.

Darren Kasehagen, Head of Distribution, Adelaide Bank said: “The improvement in housing affordability nationally is to be welcomed and it is great to see that when compared to the corresponding quarter of 2017, the number of first home buyers has increased in all states and territories year on year – and by more than 80% in NSW and the ACT.

“The reduction in the total number of new loans compared to the same quarter last year has the potential to be a continuing trend, and the same could be said for the reduction in the average loan size experienced in the March quarter as overall lending standards improve across the industry making access to credit a little harder.

“At Adelaide Bank, we are open for business and looking to help borrowers across all states and territories in all market segments – be they first time buyers, existing customers, owner occupiers or investors.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Kasehagen concluded.

Fast Facts: Across the nation

Victoria:

Of the total number of Australian first home buyers that purchased during the March quarter, 8,169 were from Victoria. The number of loans to first home buyers decreased by 17.9% for the quarter but increased 35.3% year on year. First home buyers now make up 28.4% of the State’s owner-occupier market. Rental affordability declined slightly with a 0.2% increase for the quarter with 23.8% of income required to meet median rents.

NSW:

The proportion of family income required to meet loan repayments decreased by 1.3% to 36.5%. New South Wales remains the least affordable State or Territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the March quarter, 24.6% were from New South Wales. First home buyers now comprise 22.4% of the State’s owner-occupier market. Rental affordability declined for the quarter with an increase of 0.4%. 30.1% of income is now required to meet median rents.

Queensland:

The proportion of income required to meet home loan repayments decreased to 27.5%, a 0.1% decrease over the quarter. Of all Australian first home buyers 21.3% or 5,639 were from Queensland – a decrease of 14.7%.   The proportion of first home buyers in the State’s owner-occupier market was 26.7%. Rental affordability declined slightly with an increase of 0.4% to 23.1% of income required to meet median rents.

South Australia:

South Australia recorded a decline in housing affordability with the proportion of income required to meet monthly loan repayments increasing to 27.2% or 0.8% over the quarter.  In the national breakdown, 4.9% of first home buyers were from South Australia while the proportion of first home buyers in the State’s owner-occupier market recorded a decrease of 13.7%.  Rental affordability declined by 0.5 percentage points to 22.4% of income.

Western Australia:

The number of first home buyers in Western Australia decreased by 10.5% over the quarter.  13.5% of all Australian first home buyers were from Western Australia. Housing affordability improved with the proportion of income required to meet loan repayments decreasing to 23.6%. This was a 0.3 percentage point decrease.  Rental affordability improved to 16.3% of income, a year on year decrease of 1.3%.

Tasmania:

Housing affordability in Tasmania improved with the proportion of income required to meet home loan repayments decreasing to 24.5%, a decline of 1.2 percentage points over the quarter or 0.9 percentage points year on year. Rental affordability in Tasmania declined with the proportion of income required to meet median rents increasing to 28.1%, a 1.3% increase or 1.5% year on year.  First home buyers in Tasmania decreased by 5.0% over the quarter but year on year recorded a 6.9% increase.

Australian Capital Territory:

Housing affordability in the Australian Capital Territory declined slightly with the proportion of income required to meet home loan repayments increasing to 19.7%, a 0.1% percentage points over the quarter or a decrease of 0.4% compared to the same quarter last year. Rental affordability also declined. The proportion of income required to meet the median rent is now 18.5%, an increase of 0.3% for the quarter or 0.6% year on year.

Northern  Territory:

Housing affordability in the Northern Territory improved with the proportion of income required to meet loan repayments decreasing to 19.8% for the quarter or 1.1 percentage points. This was a decrease of 1.3% year on year.   Rental affordability in the Northern Territory improved with the proportion of income required to meet the median rent decreasing to 22.5% or 0.6 percentage points over the quarter. This was a decrease of 1.2 percentage points year on year.

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Bruce Speirs, Executive, Partner Connection, Bendigo and Adelaide Bank said “As part of our continued focus to build on the strength of our Partner Connection business, I am pleased to announce changes of responsibility within the Partner Connection Leadership group and consequently, the Third Party Banking business.

“Damian Percy will transition into the role of Head of Strategic Partnerships, working closely with our Third Party Banking, Leveraged and Portfolio Funding business to continue to build on our strong partnering culture and to broaden our existing partner relationships.  As a result, Darren Kasehagen (as Head of Distribution, Third Party Banking) and Amanda James (Head of Third Party Banking Support) will now take on responsibility for the Third Party Banking business.

“Having lead the Third Party Banking business for many years, Damian has developed a deep understanding of the mortgage industry and will continue to represent the bank in various industry forums, while also providing a perspective on the issues impacting the mortgage market to the Bendigo & Adelaide Bank group. In Darren and Amanda, I am confident that we have the right leadership and Partner experience to continue to build our Third Party Banking business into the future.”  Mr Speirs concluded.

Damian Percy, Head of Strategic Partnerships said: “It has been a great privilege to build and lead our Third Party businesses for so many years – it has long allowed me to indulge my enthusiasm for partnership and my strong belief in the benefits that home ownership brings to individuals, families, and the communities in which they live.

That said, the opportunity to assist in the creation of a strategic partnership model across a broader range of businesses across the Bank is an exciting one, particularly when combined with an extended role around mortgages thought-leadership for the BEN Group and ongoing engagement with the industry that is my great passion.”

Darren Kasehagen, Head of Distribution said “Adelaide Bank remains well positioned to help our partners navigate through the ever changing property market and home lending landscape.

“Over the last 12 months we have repositioned our lending strategy in response to newly imposed regulatory caps and used the opportunity to fine tune our lending platform.  A number of enhancements to our offering, which are currently underway, will make it easier for our partners and customers to do business with us.

“Our simple, easy to understand range of affordable home lending products, combined with an outstanding service offering, will continue to smooth the process as our partners guide customers through the home ownership journey”.

“Amanda and I look forward to continuing Adelaide Bank’s proud tradition of being the partner of choice for third party home lending solutions.”

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Robert Musgrove

Bendigo and Adelaide Bank, Australia’s most trusted and fifth largest, full service retail bank, has been recognised for its unique approach to addressing societal issues as part of its core business strategy.

The Bank was recognised by the Shared Value Project as the top Organisation to Lead Through Shared Value, with its Community Bank^® model as the Bank’s flagship example of Shared Value.

A concept documented by Harvard professors and world-leading business strategists, Michael E. Porter and Mark Kramer, Shared Value recognises the intrinsic link between business strategy and community prosperity.

Accepting the award in Sydney last night, the Bank’s Executive, Engagement Innovation, Robert Musgrove said the conversation about how a corporation can address social issues is changing.

“To many in business, corporate responsibility is about the philanthropic role a business can play in improving environmental and social well-being.  Shared Value is something quite different,” Mr Musgrove said.

“At the heart of Shared Value is the belief that there is a profound connection between business success and community wellbeing; that for a business to prosper, the community it serves must also prosper.

“Through our deep engagement with our customers, and our extensive work in the hundreds of communities in which we operate, we understand how important it is for a business to add value to communities through solving social, economic and environmental issues as part of a business strategy.

“We have often said that banking is not just about the individual but also the many, and you can’t run a successful bank unless your customers succeed and they live in strong, prosperous communities.  This philosophy is embedded deep in our DNA and we firmly believe it’s in the Bank’s interest to invest in creating both.

“The Community Bank^® model – our principle expression of Shared Value – shows what customers, communities and corporations can achieve when they come together in a truly reciprocal and mutually beneficial relationship.

“We are enormously proud to receive this award, and we celebrate this recognition with the 1,900 volunteer directors who operate their local Community Bank® branches in the 320 cities, regional communities and country towns, providing investment into infrastructure and services for everyone to use, no matter who they bank with.

“We will be making an announcement very soon as to the revised figure contributed by our Community Bank® branches that will build on the $165 million already invested back into Australian communities since the inception of our uniqueCommunity Bank^® model”, Mr Musgrove concluded.

The Shared Value award is the latest award to recognise Bendigo and Adelaide Bank’s good corporate citizenship.  Last month, the bank was named in the FORTUNE Annual ‘Change the World List of companies that are Doing Well BY Doing Good’ as the top Australian company on the globally acclaimed list.

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Mike Hirst

The FORTUNE Annual “Change the World” List of Companies That Are Doing Well By Doing Good has been released, with Bendigo and Adelaide Bank ranked the top Australian company.

FORTUNE’s annual list of top 50 companies ranks enterprises that have made an important social or environmental impact through their operations and profit-making strategy with companies recognised for, and competitively ranked on, innovative strategies that positively impact the world.

In the category of Economic Opportunity and Financial Inclusion, FORTUNE has ranked Bendigo and Adelaide Bank at thirteenth globally taking into account the Bank’s measurable social impact, business results and degree of innovation.

This ranking sees Bendigo and Adelaide Bank as the leading Australian company and second in the world for a commercial bank.

Mike Hirst, Managing Director of Bendigo and Adelaide Bank said “Shared Value is a concept now gaining global momentum, although it has been central to our strategy for Bendigo and Adelaide Bank’s entire 160 year history.

“To be recognised among international enterprises committed to strengthening the connection between corporate and community success by addressing social and environmental needs is confirmation that our business model is ahead of its time.

“We are enormously proud of our Community Bank® model, which is the most obvious of our shared value models. The concept of feeding into community prosperity, rather than off it, is fundamental in all we do.

“The model better enables local communities to develop the capability and resources that underpin their own sustainability, growth and resilience through providing funding and helping build commercial skills.

“The performance of the financial system is ultimately only as good as the benefits it delivers to its users whether they be individuals, communities or businesses. We believe that to be truly successful, all stakeholders in our business – customers, staff, shareholders, partners and suppliers – must feel fairly rewarded for the effort they put in to helping our business be successful,” Mr Hirst said.

Bendigo Bank’s Community Bank® model is unlike any other banking model.

Background

The Community Bank® concept was developed as community angst grew when Australia’s major banks reduced their branch presence by about 30 percent in the 1990’s, leaving many regional towns without a local banking presence. This event sowed the seeds for a response to a pressing economic and social need; to retain local capital in the community by restoring a local banking presence.

Bendigo Bank created the Community Bank® model with the genuine belief that all Australians are entitled to receive quality banking services and specialist financial advice, no matter where they live. But what began as an alternative banking model has today become a network of people and communities taking greater control of their financial futures, investing something of themselves to shore up the prosperity and sustainability of the place they call home.

Almost 20 years on, Community Bank® branches have injected more than $165 million in profits, contributing to the social and economic sustainability of more than 316 Australian communities. The model requires partnerships with local people and community enterprises to provide communities with quality banking services, employment opportunities, a local investment option for shareholders, and importantly, a source of revenue for projects determined by local people.

Bendigo and Adelaide Bank provides the banking infrastructure and licensing requirements, while the community runs the branch and generates valuable funds to invest into their community.

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Darren Kasehagen, Head of Business Development at Adelaide Bank said: “A slight increase in housing affordability shouldn’t overshadow the welcome news that the number of first home buyers increased by 14.0% during the quarter. Compared to the corresponding quarter in 2016, the number of first home buyers went up in Queensland, Western Australia, Australian Capital Territory and the Northern Territory, with both territories recording very solid FHB growth of 49.6% and 40.0% respectively.

“The average loan size to first home buyers increased by 1.2% over the June quarter and 0.6% over twelve months to $365,600 with the average loan size to first home buyers decreasing in South Australia, Tasmania and the Australian Capital Territory over the quarter. Year on year, the average loan size to first home buyers increased in New South Wales, Victoria, Queensland and the Northern Territory.

“Over the quarter, the proportion of median family income required to meet rental payments reduced by 0.6 percentage points to 24.3%. This improvement was recorded across all states and territories except in the Australian Capital Territory which was stable. In fact, it costs less on average to meet mortgage payments in Tasmania and the Northern Territory than it does to rent.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Kasehagen concluded.

Fast Fcts

The average loan size to Australian first home buyers is now $386,664, an increase 3.7 per cent over the June quarter or an increase of 4.5% compared to last year. Victoria tops the charts as the State with the largest number of first home buyers, followed closely by Queensland.

Median rents increase slightly

Nationally, the June quarter saw an improvement in rental affordability. The proportion of family income required to meet median rents decreased by 0.6 percentage points to 24.3 per cent.

Across the nation

Victoria: Of the total number of Australian first home buyers that purchased during the June quarter, 6,648 were from Victoria. The number of loans to first home buyers in Victoria increased by 10.0%. In Victoria, first home buyers now make up 21.1% of the State’s owner-occupier market. Rental affordability improved for the quarter with a decrease of 0.7% of income required to meet median rents.

NSW: The proportion of family income required to meet loan repayments is 6.6% higher than the nation’s average. New South Wales remains the least affordable state or territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the June quarter, 18.2% were from New South Wales. First home buyers now make up only 13.0% of the State’s owner-occupier market – the lowest level across the nation. Rental affordability improved for the quarter with a decrease of 0.4 % of income required to meet median rents.

Queensland: The proportion of income required to meet home loan repayments increased to 27.2%, a 0.5 percentage point increase over the quarter. Of all Australian first home buyers over the quarter, 25.4% or 6003 were from Queensland while the proportion of first home buyers in the State’s owner-occupier market was 25.3%. Rental affordability improved slightly for the quarter with a decrease of 0.7% to 23.0% of income required to meet median rents.

South Australia: South Australia recorded a decline in housing affordability with the proportion of income required to meet monthly loan repayments increasing to 26.8%, an increase of 0.6 percentage points over the quarter but a decrease of 0.1 percentage points compared to the June quarter 2016. In the national breakdown, 5.8% of first home buyers were from South Australia while the proportion of first home buyers in the State’s owner-occupier market recorded an increase of 12.6%. Rental affordability improved by 0.7 percentage points.

Western Australia: The number of first home buyers in Western Australia increased by 16.0% over the quarter and by 3.8% compared to the same time last year. 17.5% of all Australian first home buyers were from Western Australia. Housing affordability declined with the proportion of income required to meet loan repayments increasing to 23.6% or 0.2 percentage points over the quarter but a decrease of 0.3 percentage points year on year.

Tasmania: Housing affordability in Tasmania declined with the proportion of income required to meet home loan repayments increasing to 23.9%, an increase of 0.3 percentage points over the quarter and an increase of 0.2 percentage points year on year. Rental affordability in Tasmania improved with the proportion of income required to meet median rents decreasing to 25.8%, a 0.8 percentage point drop over the quarter but an increase of 0.8 percentage points year on year. First home buyers in Tasmania decreased by 3.3% over the quarter and by 17.6% compared to the same quarter last year.

Australian Capital Territory: The number of loans to first home buyers in the Australian Capital Territory increased to 570, an increase of 49.6% over the quarter and an increase of 21.8% compared to the June quarter 2016. Housing affordability in the Australian Capital Territory improved with the proportion of income required to meet home loan repayments decreasing to 19.8%, a 0.3 percentage point drop over the quarter and a decrease of 0.7 percentage points compared to the same quarter last year. Rental affordability remained stable. The proportion of income required to meet the median rent remained at 17.9%.

Northern Territory:
Housing affordability in the Northern Territory improved with the proportion of income required to meet loan repayments decreasing to 20.3% in the June quarter or 0.8 percentage points. This was a decrease of 1.8 percentage points year on year. Rental affordability in the Northern Territory also improved with the proportion of income required to meet the median rent decreasing to 23.1% or 0.6 percentage points over the quarter or a decrease of 2.0 percentage points compared to the June quarter 2016.

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Marnie Baker

Bendigo and Adelaide Bank, Australia’s fifth largest full service retail bank, has been named Australia’s best non-major business bank for 2017.

Bendigo Bank received the award at the RFI Group’s Australian Business Banking Awards 2017 in recognition of outstanding product and service offerings for Australian business owners.

The Bank continues to build a strong reputation for customer service following on from success as the inaugural and only winner of the Roy Morgan Business Banking Customer Satisfaction Award from 2011 until the awards ceased in 2014.

Bendigo Bank’s Chief Customer Officer Marnie Baker said the award reflected the Bank’s outstanding proposition for business customers and the importance of providing a personalised and considered approach to business banking relationships.

“We’re thrilled to receive the RFI award, which recognizes that we’re living up to our vision of being Australia’s most customer connected bank,” Ms Baker said.

“Bendigo Bank’s genuine relationship model and high level of service is a differentiating factor that we know resonates with business customers.

“Our Business Banking customers are assigned a dedicated Business Banking Manager and support team who take the time to understand their businesses and provide the right products and services to meet their needs.

“Our 544 branches are an integral part of the fabric of so many local communities across Australia with more than 300 of these now owned and operated in partnership with local people, many of whom run enterprises that in turn provide employment and opportunity.

“These Community Bank® branches return a share of the profits derived from banking, including business banking, and to date have funded more than $165 million to projects and initiatives identified as important for strengthening communities.

“Businesses play a vital role in stimulating economic growth, strengthening communities and providing opportunities for employment. We look forward to continuing to support Australian businesses and further grow our banking relationships in the business sector.

“The RFI Award is yet another reason for businesses to consider a switch to Bendigo Bank,” concluded Ms Baker.

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This was a decrease of 1.3 percentage points compared to the corresponding quarter in 2016. The number of first home buyers decreased in all states and territories over the March quarter 2017.

Damian Percy, General Manager Adelaide Bank said: “While the improvement in housing affordability for the March quarter is to be welcomed, we are still in the midst of a housing affordability crisis and need to treat it as such. Recent measures by governments to assist first home buyers are similarly welcomed, but the reality is that it will take years for these policy measures to wash through the system and translate into meaningful price action.”

“The number of first home buyers decreased to 20,677 over the March quarter – a drop of 11.2%. Anything short of a national objective of halting house price inflation in Australia’s major population centres is underestimating the profound impact having some of the world’s most expensive houses in one of the world’s least densely populated nations is doing to the economic and social well-being of the nation.”

“In conversations with younger people on a recent visit to Sydney, it was clear that although they had good jobs, frugal lifestyles and relatively modest aspirations they have simply given up on the prospect of owning their own property. They haven’t given up owning their ideal property- or one in their preferred neighbourhood – they have given up on owning anything. Ever.”

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to enabling home ownership is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Percy concluded.

Fast Facts

The average loan size to Australian first home buyers is now $372,620 – a decrease of 4.3 per cent over the March quarter but an increase of 2.3% compared to last year. Victoria tops the charts as the State with the largest number of first home buyers.

Median rents increase slightly

Nationally, the March quarter saw a slight decline in rental affordability. The proportion of family income required to meet median rents increased by 0.1 percentage points to 24.6 per cent.

Across the nation:

Victoria: Of the total number of Australian first home buyers that purchased during the March quarter, 6,037 were from Victoria. The number of loans to first home buyers in Victoria decreased by 14.7%. This represents a 2.6% increase compared to the March quarter 2016. In Victoria, first home buyers now make up 21.6% of the State’s owner-occupier market. Rental affordability declined for the quarter with an increase of 0.5% of income required to meet median rents.

NSW: The proportion of family income required to meet loan repayments is 5.7% higher than the nation’s average. New South Wales remains the least affordable state or territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the March quarter, 17.4% were from New South Wales. The number of loans to first home buyers decreased by 16.2% to 3,597. When compared to the March quarter of 2016, the number of first home buyers decreased by 5.2%. First home buyers now make up only 12.3% of the State’s owner-occupier market – the lowest level across the nation. Rental affordability declined for the quarter with an increase of 0.5% of income required to meet median rents.

Queensland: The proportion of income required to meet home loan repayments decreased to 26.7%, a 1.3 percentage point drop over the quarter. Of all Australian first home buyers over the quarter, 26.0% or 5,372 were from Queensland while the proportion of first home buyers in the State’s owner-occupier market was 23.9%. Rental affordability declined slightly for the quarter with an increase of 0.5% of income required to meet median rents.

South Australia: In the national breakdown, 5.8% of first home buyers were from South Australia while the proportion of first home buyers in the State’s owner-occupier market recorded an increase to 16.8%. Rental affordability improved by 0.2 percentage points.

Western Australia: Western Australia recorded a 6.5% decrease in the number of first home buyers over the quarter, a decrease of 1.8% compared to the March quarter of 2016. The proportion of first home buyers in the state’s owner-occupier market was 31.5%. WA’s proportion of first home buyers nationally in percentage terms of the owner-occupier market across Australia was 17.2%. Rental affordability in Western Australia improved during the March quarter with the proportion of family income required to meet the median rent decreasing to 18.6%, a drop of 0.5 percentage points over the quarter.

Tasmania: The number of first home buyers in Tasmania decreased by 7.5% for the March quarter or 11.1% compared to the same quarter of 2016. The average home loan size to first home buyers increased by 5.6% to $240,333. Rental affordability declined with an increase of 1.3% for the quarter or 0.8% year on year.

Australian Capital Territory: The Australian Capital Territory recorded an 18.2% decrease in the number of loans to first home buyers. When compared to the March quarter 2016, the figure decreased by 8.9%. First home buyers made up 17.8% of the Territory’s owner-occupier market with the average loan for first home buyers decreasing by 4.1% over the quarter to $305,900. Rental affordability declined for the quarter with an increase of 0.3% of income required to meet median rents. The National Capital remains the most affordable state or territory in which to buy a home or rent.

Northern Territory: The number of loans to first home buyers in the Northern Territory decreased by 15.8% which was a 11.3% rise compared to the March quarter of 2016. The proportion of first home buyers in the Territory’s owner-occupier market was 19.8%. The average loan size to first home buyers decreased by 5% to $311,067 for the quarter or 2.6% year on year. Rental affordability improved with a decrease of 0.8%.

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Compared to the corresponding quarter in 2015, the figure decreased by 1.9 percentage points. Damian Percy, General Manager Adelaide Bank said: “The good news is that there has been an increase nationally of 6.6 per cent in the number of first home buyers for the quarter and an increase of 0.5 per cent compared to the December 2015 quarter.

Compared to the corresponding quarter in 2015, the figure decreased by 1.9 percentage points. Damian Percy, General Manager Adelaide Bank said: “The good news is that there has been an increase nationally of 6.6 per cent in the number of first home buyers for the quarter and an increase of 0.5 per cent compared to the December 2015 quarter.

Damian Percy, General Manager Adelaide Bank said: “The good news is that there has been an increase nationally of 6.6 per cent in the number of first home buyers for the quarter and an increase of 0.5 per cent compared to the December 2015 quarter.“The number of Australian first home buyers increased to 23,273 comprising almost 14 per cent of the owner occupier market. Average loan sizes increased in NSW, Victoria, Western Australia and the Northern Territory.

“The number of Australian first home buyers increased to 23,273 comprising almost 14 per cent of the owner occupier market. Average loan sizes increased in NSW, Victoria, Western Australia and the Northern Territory.

“The bad news is that despite this increase in first home buyer numbers, it is still a figure well below the historical average of 18.5 per cent of the owner occupier market since the early 1990’s. Large land releases such as those recently announced in Victoria can be expected to improve opportunities to enter the market.“Recent public lamentations on the plight facing first home buyers are welcome but one can’t help but think that the traditional unwillingness to confront those voters enjoying structural advantages that continue to keep a fire under house prices will lead to more gnashing of teeth rather than the lowering of prices. If current trends continue, young people in Sydney and, to a lesser extent, Melbourne will be living fabulous Facebook lives – but enduring real lives with lousy housing options”.

“Recent public lamentations on the plight facing first home buyers are welcome but one can’t help but think that the traditional unwillingness to confront those voters enjoying structural advantages that continue to keep a fire under house prices will lead to more gnashing of teeth rather than the lowering of prices. If current trends continue, young people in Sydney and, to a lesser extent, Melbourne will be living fabulous Facebook lives – but enduring real lives with lousy housing options”.

“Wherever you decide to live, Adelaide Bank’s continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia’s growing network of mortgage brokers,” Mr Percy concluded.

Fast Facts

The average loan size to Australian first home buyers increased by 1.3 per cent over the December quarter to $323, 633. This was a decrease of 1.5 per cent year on year.

Median rents increase slightly

Nationally, the December quarter saw a slight decline in rental affordability. The proportion of median family income required to meet median rents increased by 0.2 percentage points to 24.4 per cent.

Across the nation: Victoria tops again for First Home Buyers

Victoria: Of the total number of Australian first home buyers that purchased during the December quarter, 30.4% were from Victoria. The number of loans to first home buyers in Victoria increased by 9.5%. This represents a 2.1% decrease compared to the December quarter 2015. In Victoria, first home buyers now make up 15.2% of the State’s owner-occupier market. More than 7,000 Victorians bought a first home in the December quarter. Rental affordability declined for the quarter with an increase of 0.4% of income required to meet median rents.

NSW: The proportion of income required to meet loan repayments is 6.5 percentage points higher than the nation’s average. New South Wales remains the least affordable state or territory in which to buy a home. Of the total number of Australian first home buyers that purchased during the December quarter, 18.4% were from New South Wales. The number of loans to first home buyers increased by 7.8%. When compared to the December quarter 2015, the number of first home buyers decreased by 5%. First home buyers make up only 8.2% of the State’s owner-occupier market – the lowest level across the nation. 4,276 first home buyers entered the market in NSW. Rental affordability declined for the quarter with an increase of 0.5% of income required to meet median rents.

Queensland: Of all Australian first home buyers over the quarter, 24.9% were from Queensland while the proportion of first home buyers in the State’s owner-occupier market was 17.4%. The average loan size to first home buyers decreased by 0.8% for the quarter, but recorded a slight increase of 0.1% compared to the December quarter 2015. Rental affordability improved for the quarter with a decrease of 0.2% of income required to meet median rents.

South Australia: In the national breakdown, 5.4% of first home buyers were from South Australia while the proportion of first home buyers of the State’s owner-occupier market recorded an increase to 10.9%. Rental affordability improved by 0.2 percentage points.

Western Australia: Western Australia recorded a 1.3% increase in the number of first home buyers over the quarter, however, this was a decrease of 11.3% compared to the December quarter of 2015. WA’s proportion of first home buyers in percentage terms of the owner-occupier market across Australia was 21%. Rental affordability was steady.

Tasmania: The number of first home buyers in Tasmania increased by 6.5% for the December quarter or 14.2% compared to the same quarter of 2015. The average home loan to first home buyers went down by 6.6% to $227,500. Rental affordability declined with an increase of 1.3% for the quarter or 0.7% year on year.

Australian Capital Territory: The Australian Capital Territory recorded a 12% increase in the number of loans to first home buyers. When compared to the December quarter 2015, the figure decreased by 3.7%. First home buyers made up 14.5% of the Territory’s owner-occupier market with the average loan for first home buyers decreasing by 1.4% over the quarter to $319,133. Rental affordability declined for the quarter with an increase of 0.3% of income required to meet median rents. The National Capital remains the most affordable state or territory in which to buy a home or rent.

Northern Territory: The number of loans to first home buyers in the Northern Territory increased by 4.8% which was a 29.9% rise compared to the December quarter of 2015. The proportion of first home buyers of the Territory’s owner-occupier market was 16.4%. The average loan size to first home buyers increased by 12.2% to $327,367 for the quarter or 3.1% year on year. Rental affordability improved with a decrease of 0.2%.

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Paul Rohan

The wealth division of Bendigo and Adelaide Bank is pleased to announce the introduction of the new Bendigo Socially Responsible Growth Fund.

Sandhurst Trustees, issuer of the new product is also pleased to be able to announce that the new fund has attained certification from the Responsible Investment Association Australasia.

Head of Wealth, Paul Rohan said: “Many of our customers told us that it would be great if they could extend their commitment to a low-impact lifestyle to their chosen superannuation fund as well. Making good choices is important for younger members in particular and their compulsory retirement savings can now be a power for good with Bendigo, potentially over many decades”.

“We decided that the most efficient way to roll out and deliver the new Bendigo Socially Responsible Growth Fund was to offer it not only as a standalone fund for investors, but also as a choice in our multi-award winning Bendigo SmartStart Super fund”.

“SmartStart Super customers can now choose to make a personal statement as to how their money is invested and benefit from competitive fund focussed on maximising returns through a responsible investment regime”.

Mr Rohan said: “To limit our environmental footprint as a bank, we make conscious decisions to reduce and offset our impact and we help others to do the same by offering sustainable products and services.

“Sustainability is a path of continuous improvement for Bendigo Bank, as evidenced by our modern award-winning buildings in both Bendigo HQ and Adelaide and we will continue to implement positive action to reduce our impact on the environment and help other companies and individuals to do the same.

“Almost 15 years ago, Bendigo Bank launched Australia’s first ‘green loans’ – lower-cost loans for sustainable housing or home improvements such as water tanks, double glazing, solar energy and the like, so the Bendigo Socially Responsible Growth Fund is a logical extension to these early initiatives.

“While many of our Bendigo SmartStart customers are Gen Y and Millennials, it was their parents’ generation who were largely responsible for organising some of the most significant campaigns in our modern history to protect Australia’s environment and to drive social change. Hopefully, it won’t be too long before their parents twig to the fact that you don’t just have to have your superannuation invested with us to access the Bendigo Socially Responsible Growth Fund too”, Mr Rohan concluded.

The Bendigo Socially Responsible Growth Fund:

• is certified by the Responsible Investment Association of Australasia
• engages Sustainalytics, a responsible investment research firm, to provide ongoing, independent reporting to assist in meeting the Fund’s environmental, social and governance considerations.

Simon O’Connor, Chief Executive Officer of the Responsible Investment Association of Australasia said: “RIAA welcomes Bendigo Bank to our Certification Program with the new Bendigo Socially Responsible Growth Fund. This fund has met our strict disclosure and verification requirements, and will be an important offering to meet the rapidly growing demand from consumers who are looking to align their savings with their values.”

Find out more about the fund.

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