Media Release
7 October 2009
ENCOURAGING SIGNS FOR BUILDERS
AS LOANS FOR CONSTRUCTION GROW
Statement by Peter Jones, Chief Economist
Whilst loans for established dwellings fell back again in August, lending for construction moved
higher and there was a pickup in finance for investment housing, according to peak building and
construction organisation Master Builders Australia.
Mr Peter Jones, Master Builders’ Chief Economist, said
“Further
easing back in overall home
lending was to be expected
as government stimulus measures taper off, but there are
encouraging signs for builders with a solid increase in loans for construction of dwellings.”
He said,
“Lending
for construction of dwellings rose strongly in August, as did
lending
for
construction of investment housing, perhaps an early indication that the market is beginning to
shrug off the impact of tight lending requirements imposed by the banks.
“Nonetheless, prospects for a sustained housing upturn remain uncertain, with the fledgling
upswing threatened by the credit
squeeze, the phasing out of the First Home Owner ‘boost’
scheme and now rising interest rates.
“Master Builders believes
the Reserve Bank needs
to keep interest rates low for an extended
period in order to ensure that the nascent recovery in the interest-rate-sensitive residential
building sector can become firmly entrenched.”
The total number of dwellings financed for owner occupiers, seasonally adjusted, fell by
0.6 per cent in August, to be up 25.8 per cent on August last year.
The number of loans for ‘new’ dwellings
(construction/purchase of
new dwellings,
combined) rose by 4.7 per cent in August to be up 68.7 per cent on the same month last
year:
-
the number of loans for the construction of dwellings rose by 4.6 per cent in August,
to be up 69.2 per cent on the same month last year.
-
the number of loans for the purchase of new dwellings
rose
by 4.9
per cent in
August, to be up 67.8 per cent up on the same time last year.
The number of loans for the purchase of established dwellings fell by 1.5 in August, to be
up 20.4 per cent on the same time last year.
The value of lending to finance the purchase of investment housing rose by 7.6 per cent
in August, to be up 18.5 per cent on a year ago.
For further information contact:
Peter Jones, Chief Economist, Mobile 0403 440 838
NEWS 
