Another Solid Rise In Loans For New Dwellings

< BACK TO CONSTRUCTION starstarstarstarstar   Industry - Construction Press Release
11th December 2009, 01:06am - Views: 618





People Feature Master Builders Australia 1 image

People Feature Master Builders Australia 2 image

Media Release



9

December 2009



ANOTHER SOLID RISE IN LOANS FOR NEW DWELLINGS


Statement by Peter Jones, Chief Economist

Finance

for the building of new dwellings

moved higher again in

October but loans for

established homes fell back,

according to peak building and construction organisation Master

Builders Australia.

Mr Peter Jones, Master Builders’ Chief Economist, said

“Another

solid increase in

lending

for

construction of dwellings

in October augers well for

improved conditions in the residential

building industry.”  

“At the same time, the established real estate market is beginning to show the effects of the

phasing down of the ‘boost’ scheme and weaker consumer confidence in the wake of Reserve

Bank rate rises.”

He said,

“The investment-driven side of the

housing

market is still being affected by a lack of

project finance due to the credit crunch and the

recovery in residential building still faces

a

number of hurdles, including higher interest rates.” 

“Master Builders believes

the Reserve Bank needs

to take a more

cautious approach on

interest rates and ensure that recovery in the interest-rate-sensitive residential building sector

becomes firmly entrenched and is able to lead the economy out of the downturn.”


The total number of dwellings financed for owner occupiers, seasonally adjusted, fell by

1.4 per cent in October, to be up 25.5 per cent on October last year.


The number of loans for ‘new’ dwellings

(construction/purchase of

new dwellings,

combined) rose by 5.7 per cent in October to be up 82.7 per cent on the same month last

year:

-

the number of loans for the construction of dwellings rose by 9.2 per cent in October,

to be up 102.9 per cent on the same month last year;

-

the number of loans for the purchase of new dwellings fell by 3.9 per cent in October,

to be up 40.0 per cent up on the same time last year.  


The number of loans for the purchase of established dwellings fell by 2.8 in October, to

be up 18.1 per cent on the same time last year.


The value of lending to finance the purchase of investment housing fell by 0.6 per cent in

October, to be up 14.7 per cent on a year ago.


For further information contact:

Peter Jones, Chief Economist, Mobile 0403 440 838






news articles logo NEWS ARTICLES
Contact News Articles |Remove this article