The number of loans for the construction of a new dwelling rose for the sixth consecutive month in November to reach a new record, according the Housing Industry Association. Source: Timberbiz
HIA economist Angela Lillicrap said this was the highest result for the second month in a row since the Australian Bureau of Statistics (ABS) began reporting this data in 2002.
Ms Lillicrap said that while HomeBuilder was the catalyst for improving consumer confidence in the housing market, the strength of housing finance data is also due to several factors including low interest rates.
“The number of construction loans to owner occupiers in the three months to November was 83.7% higher than the same time last year,” she said.
The number of loans for the purchase of land in the three months to November 2020 was also up by 99.2% compared with the same period in 2019.
“HIA New Home Sales data suggests that detached housing finance approvals will continue to be strong over the coming months,” Ms Lillicrap said.
“The extension of HomeBuilder at the end of November is not a factor in this month’s result but will see the strength in housing finance data extend into 2021.”
Ms Lillicrap said that investors were returning to the market, with the value of lending to inves-tors up by 3.7% for the three months to November 2020 compared with the same time last year. This was driven by loans for the purchase of existing dwellings.
“It was also another very strong month for first home buyers,” she said.
“The number of loans to first home buyers reached the highest number since 2009, accounting for 42% of the total number of owner occupier loans issued in November.
“It is evident in today’s data that HomeBuilder has been successful in boosting confidence in the market and creating work on the ground,” Ms Lillicrap said.
Across the states, the number of loans to owner-occupiers for the construction of a new dwell-ing in the three months to November 2020 compared with the same time last year increased the most in Western Australia (+144.4%) followed by Queensland (+128.0%) and the Northern Territory (+127.6 per cent). Victoria (+71.2 per cent), South Australia (+53.1%), Tasmania (+45.8%) and New South Wales (+43.2%) and also recorded strong results. The Australian Capital Territory recorded an increase of 28.9% during this period.
