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
NEWS 
