Property Market Information: New home lending continues growing across Australia

By the resi financial blog team, 14 April 2014

New home lending  grows in Australia

Property construction could be on the cards for potential homeowners across the nation, as the latest data from the Australian Bureau of Statistics has highlighted the growth in new home lending activity across Australia. With the strength of the property market rising, growing home construction will help the nation grow and cope with the expected population boom. 

Over the three months ending February, the number of owner-occupier home loans for new home construction rose by 7.2 per cent. Furthermore, the owner-occupier market is now 15.4 per cent stronger than the same time 12 months prior - highlighting the continued growth of the market following the reduction of the official cash rate in August last year.

Housing Industry Association Economist Diwa Hopkins said these strong results - especially during January and February - were encouraging signs of recovery. 

"This strong growth in housing finance is consistent with other leading indicators of the residential construction sector, including dwelling approvals and new home sales. Today's housing finance results auger well for much needed further growth in new home building," said Ms Hopkins in an April 9 statement. 

"A sustained increase in new home building activity which provides Australia with an appropriate supply of housing is a necessary condition for addressing the persistent problems around housing affordability." 

On top of this, property investment could become a great option for wealth generation. Financing for investors looking to build property for resale or rental has risen by 13.2 per cent over the three months to February, illustrating the overarching strength of the real estate landscape across Australia. 

Expanding the overall property supply across the nation will help to ultimately aid the growth of the nation's economy, as well as help provide accommodation for the droves of people expected to call Australia home in the coming years. 

Categories: Home Loans, Property Investment