Investor loans to build new homes up 38% in January: ABS
There was a 38.1% rise in construction loans for investment purposes in January, according to ABS January housing figures.
This increase was highlighted by Commonwealth Bank economist Diana Mousina who called it "one positive part" of the otherwise disappointing January data release.
However she told Property Observer this number tended to be "quite volatile".
Overall construction lending rose 4.7% over January and is up 19.5% over the past year.
"Residential construction activity is in the early stages of a recovery and we expect to see a continued lift in activity over the year.
"Rising residential construction is an important element in the RBA’s game plan for 2013," say Mousina.
Source: Commonwealth Bank
Nationally, loans to buy and build homes rose slightly.
HIA economist Geordan Murray says the aggregate number of loans to owner occupiers for the construction and purchase of new homes rose only 0.6% in January.
"It would have been a touch optimistic to expect the interest rate cuts late in 2012 to have an immediate impact, but we expect the effects of this to emerge over the coming months.
“While we didn’t see a material improvement in number of loans for new homes in January 2013, activity over the month was still 9.3% higher than we saw in January 2012.
"From this perspective, we have started the year in a better position than we did in 2012.
“If we consider the total value of lending for housing, there was an increase of 2.4% during the month of January 2013. After contracting in the months of November and December 2012 it is pleasing to see lending regain some of the lost ground,” says Murray.
Peter Jones, Master Builders Australia’s chief economist, said the 0.6% rise in the number of loans for the construction of dwellings and for the purchase of new dwellings (and 9.3% up on the corresponding figure in January 2012) was a "welcome pick up but a far cry from the sort of strong housing recovery builders were hoping for given where we are in the current easing cycle".
“Consumers remain overly cautious about committing to a significant purchase like housing. The industry is hoping the rise in consumer confidence will quickly translate into the new housing market," he says.
