Slight increase in lending for new homes in Australia
17-05-2012
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‘The number of loans for the construction or purchase of new homes increased by 3.5% in the month of March. The Housing Industry Association, the voice of Australia’s residential building industry, said it was a welcome piece of good news given the existing weak conditions facing the new home building sector.
‘The March figures reflect a period prior to the 50 basis point cut in interest rates which occurred in May, and although the cut was only partially passed on by Australia’s banks, this factor should act to spur a further modest improvement in new home lending in the coming months,’ said HIA senior economist, Andrew Harvey.
‘However, while the 50 basis point rate cut was the correct call, more is needed in terms of further rate cuts and also housing supply reform by the state and Federal governments. We need to keep in mind that new home lending figures show that there are around 2,000 fewer loans each month than there would have been if the longer term pre global financial crisis trends in housing finance had continued,’ he added.
The total number of seasonally adjusted loans for owner occupied new homes rose by 3.5% in March 2012, driven by a 13.3% increase in the number of loans for the purchase of a new dwelling. Lending for the construction of dwellings was basically flat, up by 0.2%.
New South Wales was a key driver of the national result with the March 2012 seasonally adjusted number of loans for new housing, construction and purchase of new, up by 13.6%.
Elsewhere, Victoria rose by 1.7%, South Australia by 0.5% Western Australia by 1.9%, Tasmania by 7.3% the Northern Territories by 19.3% and the ACT by 12.1%.
Queensland was the only jurisdiction which saw new home lending fall in the month of March, down by 2%.
