Australian new home lending continuing to trend higher; number of construction loans during quarter ended in April rose 5.4% to highest quarterly level since early 2010: Housing Industry Assn.
June 10, 2014
– Figures from the Australian Bureau of Statistics show new home lending activity continuing to trend higher, said the Housing Industry Association, the voice of Australia’s residential building industry.
“There is still upward momentum to lending for the construction of new dwellings, even allowing for a decline in the seasonally adjusted number and value of such loans in the month of April 2014,” said HIA Chief Economist, Dr Harley Dale.
“Over the three months to April 2014 the number of construction loans increased by 5.4 per cent to reach the highest quarterly level since early 2010,” said Harley Dale. “In value terms the profile is very similar.”
“Today’s update is consistent with further growth in detached and low density dwelling construction into the new fiscal year,” observed Harley Dale. “Meanwhile a modest downward trend in lending for the purchase of new dwellings still signals historically elevated levels of medium-high density construction being maintained in 2014-15.”
“This positive profile for new dwelling construction by owner occupiers is complimented by the value of lending for investment in new rental stock being at its highest since before the GFC,” noted Harley Dale.
“There needs to be a clearer indication in mid-2014 of a sustainable recovery in lending for larger alterations and additions,” concluded Harley Dale. “Overall, however, the profile for housing finance is a positive one for residential construction activity in coming quarters.”
Over the three months to April 2014 HIA’s seasonally adjusted estimate shows an increase in the number of loans for new housing in: New South Wales (+1.1 per cent); Victoria (+5.0 per cent); Queensland (+5.5 per cent); South Australia (+7.5 per cent); Western Australia (+6.9 per cent); and Tasmania (+10.7 per cent). Over this three month period the number of new housing loans fell by 31.8 per cent in the Northern Territory and by 40.0 per cent in the Australian Capital Territory.
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