The number of loans for the construction of a new dwelling increased by a further 11.5% in the month of October 2020
“This is the highest result since the Australian Bureau of Statistics (ABS) began reporting this data in 2002,” stated HIA’s Economist, Angela Lillicrap.
“HomeBuilder was the catalyst for improving consumer confidence in the housing market. The strength of housing finance data is also due to several factors including low interest rates,” added Ms Lillicrap.
The number of construction loans to owner occupiers in the three months to October was 62.3% higher than the same time last year. The number of loans for the purchase of land in the three months to October 2020 has also doubled compared to the same period in 2019.
It was also a very strong month for first home buyers. The number of loans to first home buyers reached the highest number in over a decade, accounting for 42% of the total number of owner occupier loans issued in October.
Across the states, the number of loans to owner-occupiers for the construction of a new dwelling in the three months to October 2020 compared to the same time last year increased the most in Queensland (+106%) followed by Western Australia (+94.1%) and the Northern Territory (+91.2%). Victoria (+49.8%), South Australia (+45.4%), New South Wales (+31.9%) and Tasmania (+28.3%) also recorded strong results. The Australian Capital Territory recorded an increase of 16.1 % during this period.
Master Builders Australia chief executive Denita Wawn says: “Work on all of these new home building projects is keeping the residential building industry very busy in the lead up to Christmas and means that 2021 will get off to a very positive start.”
She adds: “Residential building activity has a much stronger ability to support overall economic growth than almost any other sector.
“We will see more of the benefits from HomeBuilder coming over the next few months. This is good news for the businesses in the building supply chain and the people they employ. It is good news for the whole economy.”
