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 
