Homebuilder continues to build confidence and support tradies’ jobs

Today’s Australian Bureau of Statistics’ Lending Indicators data shows the Morrison Government’s HomeBuilder programme is delivering on its goal of keeping Australia’s construction pipeline flowing to protect tradies’ jobs.

In July, the ABS found that the number of dwelling finance commitments for owner occupiers, excluding refinancing, rose by 9.7 per cent in July 2020, its strongest monthly growth since January 2009, and the largest month-on-month rise in the history of the series.

Analysis of the ABS data by the Housing Institute of Australia indicates there has been a 30 per cent increase in the number of loans issued for the purchase of residential land for the second month in a row.

Their analysis also showed finance approvals for the purchase of a block of land are now 69.9 per cent higher than July last year.

HomeBuilder was designed to encourage those who may have understandably pulled back from undertaking a new build, or substantial rebuild, in March when the COVID-19 pandemic hit, to enter the market and keep the pipeline flowing.

HIA Chief Economist Tim Reardon said;

“There has been a tangible improvement in sentiment and confidence in the housing market.”

“The surge in land sales should see a recovery in the number of slabs being poured as early as the December quarter, as customers proceed through the process to design and construct a new home. This will protect employment in the residential building industry and across the economy into 2021.”

Master Builders Australia CEO Denita Wawn said today’s figures showed, “…the highly effective impact of HomeBuilder in activating demand.” Ms Wawn also said;

“While the purchase of established homes are obviously not eligible for HomeBuilder, lending in this part of the loan market still jumped substantially during July. This is another encouraging sign, showing that HomeBuilder is starting to help strengthen sentiment even in those areas which is does not directly target.”

Real Estate Institute of Australia President Adrian Kelly said the strong increase in loan commitments for the purchase of residential land was;

“…reflecting the uptake of the Government’s HomeBuilder initiative to boost building activity.”

Today’s figures, follow recent ABS Building Approvals data for July, which showed approvals rose 12 per cent, to be 6.3 per cent higher than a year ago, well above market expectations.

With every new finance commitment and every new building approval we are keeping the pipeline of construction flowing, which protects tradies’ jobs.

By giving Australians confidence and support to enter the new home market, or make it more affordable to add to their existing home, HomeBuilder is protecting and creating more jobs across the construction industry at a time when the economy needs it most.

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