The Australian property sector is witnessing a return of new builds, but unfortunately this has coincided with a drop off in lending. Figures from the Australian Bureau of Statistics showed the total number of private sector house approvals increased 0.6 per cent in August, contributing to the overall 0.1 per cent rise in the total dwelling units approved. This marks something of a recovery and is the ninth consecutive month approval numbers have grown.
The Australian Capital Territory saw the greatest jump in new projects being approved, with a 2.3 per cent increase. This was followed by the Northern Territory, which posted a 1.3 per cent rise, and New South Wales, with 1.1 per cent growth. South Australia, Tasmania and Queensland also saw approval numbers rise by 0.9 per cent, 0.7 per cent and 0.1 per cent respectively. However, Victoria saw a 1.7 per cent drop.
While growth in approvals across most of the country is good news for Australia, which is struggling with a lack of supply, this isn't being matched by improved lending conditions. House finance data has showed that new home lending slipped back during August. In fact, the number of loans advanced for purchase and construction of property dropped to 8.347 on a seasonally adjusted basis. House Industry Association (HIA) senior economist, Shane Garrett, said: "This represents a slight decline on the previous month’s result and is a timely warning against complacency towards Australia’s housing market."
While lending activity has risen significantly when compared to a year ago, growth has stalled over the last six months and remains low by historical standards. In the three months to August, the number of loans to owner occupiers for the construction and purchase of new homes increased by just 0.3 per cent - a 13.3 per cent rise year-on-year.
According to the HIA, more needs to be done to encourage lending. "The patchiness we are continuing to see in areas of the home loans market means that another interest rate cut from the RBA before the end of 2013 is important in order to ensure that the market recovery fires on all cylinders," Mr Garrett explained.
Article by +https://plus.google.com/100585359199579398168?rel=author on behalf of Propertyshowrooms.com
The Australian Capital Territory saw the greatest jump in new projects being approved, with a 2.3 per cent increase. This was followed by the Northern Territory, which posted a 1.3 per cent rise, and New South Wales, with 1.1 per cent growth. South Australia, Tasmania and Queensland also saw approval numbers rise by 0.9 per cent, 0.7 per cent and 0.1 per cent respectively. However, Victoria saw a 1.7 per cent drop.
While growth in approvals across most of the country is good news for Australia, which is struggling with a lack of supply, this isn't being matched by improved lending conditions. House finance data has showed that new home lending slipped back during August. In fact, the number of loans advanced for purchase and construction of property dropped to 8.347 on a seasonally adjusted basis. House Industry Association (HIA) senior economist, Shane Garrett, said: "This represents a slight decline on the previous month’s result and is a timely warning against complacency towards Australia’s housing market."
While lending activity has risen significantly when compared to a year ago, growth has stalled over the last six months and remains low by historical standards. In the three months to August, the number of loans to owner occupiers for the construction and purchase of new homes increased by just 0.3 per cent - a 13.3 per cent rise year-on-year.
According to the HIA, more needs to be done to encourage lending. "The patchiness we are continuing to see in areas of the home loans market means that another interest rate cut from the RBA before the end of 2013 is important in order to ensure that the market recovery fires on all cylinders," Mr Garrett explained.
Article by +https://plus.google.com/100585359199579398168?rel=author on behalf of Propertyshowrooms.com