New home lending continues fall
The Housing Industry Association says that figures released today by the Australian Bureau of Statistics show that new home lending has fallen to its lowest level in 11 months, confirming that the new home building industry faces a tough year ahead.
The figures show that while there was an overall rise in all home lending, the slowdown to have new homes built has continued, falling for the fifth consecutive month.
The HIA says the timing of the slowdown is unfortunate as the first home owners grant for new homes is to be scaled back at the end of this month, right at the time when the economy is absorbing the latest interest rate rises.
Ruth Morschel, the HIA’s executive director of public housing, says that there are very genuine fears over job losses, not only in the building industry directly, but in the many associated manufacturing, retail and service industries.
"A healthy housing and renovations industry relies on interest rate stability," says Morschel. "HIA calls on the Reserve Bank to allow the latest round of increases to be absorbed before considering any further rises.
“There must be less reliance on monetary policy as even though inflation is at the top end of the Reserve Bank’s target range, the appreciation of the Australian dollar over recent months will clearly affect export activity and put downward pressure on inflation.”
A total of 51,576 loans were approved in April 2002. Of these, 44,484 were for established dwellings (up 3.1 percent), 1510 were for newly erected dwellings (up 3.3 percent) and 5582 were for the construction of a home (down 3.6 percent).
For all lending, the largest fall was recorded in Tasmania, down 11.6 percent, followed by South Australia, down 5.4 percent, NSW, down 3.1 percent and Victoria, down 2.6 percent. Rises were recorded in the ACT, up 8.1 percent, the Northern Territory, up 5.7 percent, Queensland, up 5.4 percent and Western Australia, up 0.2 percent.
Source: Building Products News.
11-Jun-2002