Those looking for Australian property are increasingly deciding to construct their own homes, new figures suggest. Data from the Australian Bureau of Statistics (ABS) showed that the number of loans advanced for owner occupiers to construct new properties is at the highest level since March 2010. This is a symptom of improved lending conditions for home building in the country.
ABS reported a one per cent increase in the total number of owner occupier housing loans, while loans for construction also jumped by one per cent. Loans for the purchase of new dwellings rose 3.6 per cent, while loans for established dwellings grew two per cent. These figures are welcome news for the Australian property market and with construction finance slightly easier to come by, the country will be able to address its lack of housing supply and the upwards pressure this is having on prices.
"The upward momentum in lending for new investment property is continuing," Harley Dale, Housing Industry Association (HIA) chief economist, commented. "The dual growth evident for lending for construction across both owner occupiers and investors is a good sign for new home building activity in early 2014."
What's more, six out of the eight Australian states and territories contributed to the growth in construction lending for owner-occupiers, showing the trend is relatively widespread. "This is an important tick in the box for the residential construction outlook as the first round new home building recovery in 2012/13 was narrowly driven with only two states – New South Wales and Western Australia – accounting for the bulk of the growth,” Mr Dale said.
However, it's not good news across the board and the original value of loans for larger alterations and additions aren't performing as strongly. Indeed, they declined by 5.1 per cent over the three months to October 2013. They now stand just 1.8 per cent higher than in the same period in 2012. Renovations investment is also at a ten year low and Mr Dale said there needs to be substantial improvements ahead.
Article by +https://plus.google.com/109065039197462640663?rel=author on behalf of Propertyshowrooms.com
ABS reported a one per cent increase in the total number of owner occupier housing loans, while loans for construction also jumped by one per cent. Loans for the purchase of new dwellings rose 3.6 per cent, while loans for established dwellings grew two per cent. These figures are welcome news for the Australian property market and with construction finance slightly easier to come by, the country will be able to address its lack of housing supply and the upwards pressure this is having on prices.
"The upward momentum in lending for new investment property is continuing," Harley Dale, Housing Industry Association (HIA) chief economist, commented. "The dual growth evident for lending for construction across both owner occupiers and investors is a good sign for new home building activity in early 2014."
What's more, six out of the eight Australian states and territories contributed to the growth in construction lending for owner-occupiers, showing the trend is relatively widespread. "This is an important tick in the box for the residential construction outlook as the first round new home building recovery in 2012/13 was narrowly driven with only two states – New South Wales and Western Australia – accounting for the bulk of the growth,” Mr Dale said.
However, it's not good news across the board and the original value of loans for larger alterations and additions aren't performing as strongly. Indeed, they declined by 5.1 per cent over the three months to October 2013. They now stand just 1.8 per cent higher than in the same period in 2012. Renovations investment is also at a ten year low and Mr Dale said there needs to be substantial improvements ahead.
Article by +https://plus.google.com/109065039197462640663?rel=author on behalf of Propertyshowrooms.com