Monday, 1 October 2018 The Australian Prudential Regulation Authority ('APRA') recently released its latest quarterly property exposure data for domestic and foreign Authorised Deposit-taking Institutions ('ADI's'). The Property exposures update - June quarter 2018 provides a snapshot of APRA's quarterly property exposures data on commercial and residential sectors. Key insights The number and value of new interest-only loans remain substantially below long-run averages, whilst the rapid expansion of foreign branch banks continues. Interest only loans New interest-only home loan approvals remain near the lowest level since reporting commenced in March 2008, despite a slight increase over the June quarter to 15,704 (13,626, March 2018). The value of approved new interest-only loans in June 2018 was 47.8% lower than in June 2017. There has been an equally dramatic decline in interest-only loans as a proportion of total loans, being 16.6% of all new home loans issued for the June 2018 quarter Foreign bank branches Commercial property exposures for foreign branch banks are now 364% higher than the post-GFC low of December 2012. Foreign branch banks now represent 14.2% of total exposures at June 2018, up from only 3.4% in December 2012. Development loans An 8.8% decline in exposures to development and subdivisions for the 12 months to June 2018 indicates lenders’ general aversion to the land development/subdivisions market. Exposures are down 15.3% from the most recent peak in March 2017 To read the full Property exposures update click Download PDF below