Residential Builders Encouraged As Pick Up In Loans For Construction Continues 1

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9th November 2009, 04:36pm - Views: 561





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Media Release



9

November 2009


RESIDENTIAL BUILDERS ENCOURAGED AS PICK UP

IN LOANS FOR CONSTRUCTION CONTINUES


Statement by Peter Jones, Chief Economist

Finance

for construction moved higher again in September and loans

for investment housing

consolidated after recent gains, according to peak building and construction organisation Master

Builders Australia.

Mr Peter Jones, Master Builders’ Chief Economist, said “The encouraging signs for residential

builders

continued in September

with another

solid increase in

lending

for construction of

dwellings.”  

He said,

“Nonetheless, the fledgling upswing is still threatened by the credit squeeze, the

phasing out of the First Home Owner ‘boost’ scheme and rising interest rates. 

“Master Builders believes the Reserve Bank needs to take a cautious approach on interest rates

to 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, rose

by 5.1 per cent in September, to be up 32.7 per cent on September last year.


The number of loans for ‘new’ dwellings

(construction/purchase of

new dwellings,

combined)

rose

by

5.5

per cent in September

to be up

75.8

per cent on the same month

last year:

-

the number of loans for the construction of dwellings

rose

by

8.0

per cent in

September, to be up 83.9 per cent on the same month last year;

-

the number of loans for the purchase of new dwellings

fell

by 0.6

per cent in

September, to be up 57.5 per cent up on the same time last year.  


The number of loans for the purchase of established dwellings rose by 5.0 in September,

to be up 20.4 per cent on the same time last year.


The value of lending to finance the purchase of investment housing fell by 0.1 per cent in

September, to be up 18.4 per cent on a year ago.







For further information contact:

Peter Jones, Chief Economist, Mobile 0403 440 838






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