Housing Finance for Property Investments Highest Since 2009
New data shows Housing Finance for Property Investments Highest Since 2009
Sydney- Housing finance data released today by the ABS indicate that lending for new homes was strong in January 2014, an auspicious signal for conditions in the residential construction sector in the new year, said the Housing Industry Association said.
The HIA also recorded a boost in Australian investment building, with 6,500 investment properties approved for construction in January 2014. That’s the highest since the Global Financial Crisis in 2009, representing about $1.4 billion in new housing investments in Australia in January 2014.
“The number of loans issued to owner occupiers for new homes is at its highest level in four years. Lending for new investment property declined in January, however this follows five months of strong results in this category of housing finance,” said HIA economist, Diwa Hopkins.
In January 2014 the number of owner occupier loans for the construction of new dwellings increased by 5.8 per cent, while the number of owner occupier loans for the purchase of new dwellings eased by 1.0 per cent.
“The overall January result is a promising signal that recently improved conditions in the residential construction sector will continue into 2014,” commented, Diwa Hopkins.
“There are also some important signs emerging from the state by state breakdown of new home lending,” added Ms Hopkins. “Most notably, the strong growth experienced in 2013 in New South Wales and Western Australia appears to be moderating.”
“We wouldn’t be discouraged by this development and it is actually in line with our forecasts. We’re expecting the recovery in residential construction to spread to and gather momentum in other key states including Queensland and South Australia …NSW and WA,” commented Ms Hopkins.