The residential building sector is experiencing a ‘V-shaped’ recovery with loans for owner-occupiers back to the same level they were 18 months ago, according to the latest figures from the Australian Bureau of Statistics (ABS).
Loans for the construction and purchase of new dwellings continued to grow in June, with low interest rates and the first home owners’ boost underpinning demand, Master Builders Association (MBA) said.
“Importantly, loans for construction of dwellings have risen sharply in recent times, with flow-on effects to the wider economy expected to show through during the next six months,” Peter Jones, MBA chief economist, said.
The “healthy” June quarter for new home lending is pointing to a recovering in home starts over the second half of the year, according to the Housing Industry Association (HIA).
“We expect to see a 15 per cent increase in housing starts by the end of 2009 as the positive impact of how mortgage rates and first home buyer stimulus shows up in actual construction, HIA chief economist, Harley Dale, said.
The total number of seasonally adjusted loans for owner occupiers increased by 1.1 per cent in the month of June 2009 and was up by 7.4 per cent over the quarter. The number of loans for construction increased by 2.8 per cent over the month and was up by a strong 21.7 per cent over the June quarter. Lending for established dwellings (net of refinancing) was up by 1.2 per cent in the month and 7.7 per cent over the quarter. The number of loans for the purchase of new dwellings eased by 0.2 per cent in June but increased by 6.4 per cent over the quarter.
