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Rise in construction loan approvals despite drop in home-owner loans

The amount of construction loans approved rose by 1.2 per cent despite a decrease in the number of loans approved for home owners.

The number of loans approved for the construction of new homes rose in December 2012, the Australian Bureau of Statistics (ABS) has reported.




Compared to November, the amount of loans granted for the construction of new homes rose by 1.2 per cent. This is the first time that there has been a rise in the amount of construction loans approved since July.




The rise in construction loans approved comes in spite of the fact that there has been a 4.4 per cent decline in the amount of homes approved to be built, according to statistics from the ABS.




News of improved results for those seeking construction loans comes at a time when the number of loans approved for home owners has decreased for the third month in a row. The financial commitments for owner occupied houses fell by 1.5 per cent from November to December.




However, there was a 1.9 per cent rise from November to December in the amount of loans approved for new homes to be bought.




Posted by Ravin Chatlani




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