Home lending highlights the importance of new housing in Australia : HIA
ABS figures for November 2016 demonstrate strength in lending for new housing, said the Housing Industry Association, the voice of Australia’s residential building industry.
“Lending for new housing – to both owner occupiers and investors – turned in strong results in this latest ABS update,” said HIA Chief Economist, Dr Harley Dale. “The new home building sector will continue to provide strong support to the broader Australian economy through the first half of 2017.”
The number of owner occupier loans for the construction or purchase of a new dwelling increased by 2.7 per cent in November 2016. Meanwhile the value of lending for construction investment reached a new record on a moving annual basis.
“The new home lending cycle has peaked, but the November results confirm that the elevated volumes of lending we have seen over the last three and a half years remained in play as 2016 neared an end,” noted Harley Dale. “That’s a tick in the box for the Australian economy.”
“As has been typical throughout this cycle, the profile for new home lending varies widely between states and territories,” concluded Harley Dale. “Looking beyond just today’s update, it is not surprising that New South Wales and Victoria are faring the best overall.”
Compared with 12 months ago, the number of loans for construction and purchase of new homes increased in five out of eight states and territories in November 2016. The fastest annual growth occurred in Tasmania (+28.4 per cent), followed by Queensland (+20.0 per
cent), South Australia (+11.0 per cent), New South Wales (+9.9 per cent), and Victoria (+9.6 per cent). The number of loans for new housing fell in November in the Northern Territory (- 57.9 per cent), the Australian Capital Territory (-23.3 per cent), and in Western Australia (-9.5per cent).