New home building set to remain strong in Australia, it is claimed
Lending figures shows that new home building activity in Australia is set to remain at a strong level, according to the Housing Industry Association, the voice of Australia’s residential building industry.
During November 2014, the number of owner occupier loans for the construction or purchase of new dwellings declined by 1.4% but lending was 4.6% higher than the same month in
Furthermore, new home loans increased by 0.7% in the three months to November and were 7.3% higher than the same period a year earlier.
Comparing the total number of owner occupier loans for new housing in November 2014 with November 2013 shows the strongest increases was in the Northern Territory with growth of 63.9% and in Tasmania with growth of 14.3%.
There were also increases in Victoria where growth was 3.3%, Queensland up 1.6% and South Australia up 1.7%. However, new loan volumes fell in in New South Wales by 6.9%, in Western Australia by 4.6% and in the ACT by 2.3% over the past year.
HIA senior economist Shane Garrett pointed out that building approvals reached an all-time high during November, and the lending figures add further to the evidence that Australia’s new home building industry will start 2015 on a strong footing.
But he also warned that although the number of loans remains high there is little sign of further growth. ‘The number of loans for new home purchase has fallen over the past year. Fortunately, the flow of loans for new home construction is very solid,’ he explained.
‘Indeed, the number of new home construction loans in November was 7.6% higher than a year ago. Healthily functioning housing markets should see a substantial turnover of homes in any given month,’ he pointed out.
‘However, the total volume of loans for home purchase has been falling consistently over the past few months. As home prices have risen, so too have the stamp duty bills paid by ordinary home owners. Excessive taxation is hampering the efficient operation of Australia’s housing market. The issue requires immediate attention,’ he added.