New home lending is "healthy" down under

Lending for owner occupiers to build new homes in Australia is now at its highest level since March 2010, according to new figures from the ABS. The data shows that six out of eight states and territories contributed to the growth in construction lending for owner occupiers, which the Housing Industry Association hailed as a good sign for new home building activity in the New Year.

“The number of loans advanced for owner occupiers to construct new homes is at its highest level since March 2010. Meanwhile the upward momentum in lending for new investment property is continuing,” commented HIA Chief Economist, Harley Dale. “The dual growth evident for lending for construction across both owner occupiers and investors is a good sign for new home building activity in early 2014."

“This is an important tick in the box for the residential construction outlook as the first round new home building recovery in 2012/13 was narrowly driven with only two states – New South Wales and Western Australia – accounting for the bulk of the growth," he continued.