Home News Loans for new housing construction rise by 8%

Loans for new housing construction rise by 8%

Font size :

Home lending in Australia continued to strengthen buoyed by demand from first homebuyers and investors according to a new data.

The latest housing finance figure from the Australian Bureau of Statistics showed the number of new housing loans climbed by 2.2% in May to its highest level in more than a year. Loans for new dwelling construction recorded an 8% jump, while lending to buy new dwellings rose by 2.9%.

"The latest round of housing finance figures has reinforced the strength of the housing sector," said Savanth Sebastian, economist with CommSec. "The sustained improvement in overall housing activity and more importantly, the substantial jump in construction of new dwellings, will have multiplier effects throughout the economy. The sharp lift in home construction should ensure economic growth remains well supported."

Mortgage Choice CEO, Michael Russell added that housing market participants should be buoyed by the all-encouraging May ABS figures, especially with the significant growth in housing finance for the construction of dwellings and purchase of new dwellings.

"Hopefully this increased demand for property lending translates into greater job security for the housing sector and those who service it. Positive results are always welcome in the volatile economic environment we are still experiencing, notwithstanding the noticeable return to optimism over the last couple of months.

"It is also fantastic to see the number of first homebuyer commitments as a percentage of owner occupied housing finance commitments increase from 28.6% in April to 29.5% in May. The total number of dwellings financed for this group rose too, from 17,624 to 19,527. This is what some would see as a surprise return, given that number fell between March and April," he said.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords