Global Power | Local Knowledge | Uniquely Personal
中文

New home lending continues to g...

New home lending continues to grow in Australia

The amount being loaned for the building of new homes continues trending high.
The amount of money being loaned for the building of new homes in Australia is continuing to trend high, according to the Australian Bureau of Statistics.

It will come as good news for the property market, wherein a supply and demand imbalance has seen property prices rocket in the last few years to a level where many have suggested there is a danger of a property bubble.

According to the report, the number of loans being afforded for the building of new homes climbed by 0.9 per cent month on month in May, while they had risen by 3.1 per cent in the three months to May. 

"Construction loans, the principal component of new home lending, are at their highest level in over four years. New dwelling commencements are on track to hit their second highest level on record in 2014," said Harley Dale, chief economist at the Housing Industry Association.

The number of people taking out a loan to buy a newly built property also climbed in May, finishing 1.6 per cent ahead of April. 

Posted by Ravin Chatlani

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

Subscribe Now