Lending for new homes sets record again

Today’s Australian Bureau of Statistics (ABS) lending indicators for November 2020 shows owner occupier loan commitments for the construction of new dwellings rose by 7.2 per cent, up 99 per cent on the same time the previous year.

For the third month in a row the results have set a record since the start of the ABS series in 2002.

In November, first home buyers continued to enter the market at the highest level since October 2009, with the number of owner occupier first home buyer loan commitments rising 3.1 per cent. An increase of 47.6 per cent from the same time last year.

Housing Industry Association (HIA) analysis shows the number of loans to owner occupiers for the construction of a new dwelling increased in all states and territories in the three months to November 2020 compared to the same time last year;

  • Western Australia (up 144.4 per cent),
  • Queensland (up 128.0 per cent),
  • Northern Territory (up 127.6 per cent),
  • Victoria (up 71.2 per cent),
  • South Australia (up 53.1per cent),
  • Tasmania (up 45.8 per cent),
  • New South Wales (up 43.2 per cent), and
  • Australian Capital Territory (up 28.9 per cent)

HIA Economist Angela Lillicrap said today’s results reflect the effectiveness of the Morrison Government’s HomeBuilder programme in driving confidence and work for our tradies;

“It is evident in today’s data that HomeBuilder has been successful in boosting confidence in the market and creating work on the ground,”

To maintain this momentum in Australia’s economic comeback, the Morrison Government has announced HomeBuilder will be extended until 31 March 2021.

Extending HomeBuilder ensures there will be a steady pipeline of construction activity through to 2022 to lock in this momentum.

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