Investor new-build demand remains high


Investor new-build demand remains high

Posted on Wednesday, September 09 2015 at 4:15 PM

Recent ABS housing finance data shows investors remain keen on new-builds but the full effect of tighter lending guidelines is yet to be felt, according to the Housing Industry Association (HIA).

Lending to investors constructing new homes increased 11.7 per
cent in July to reach a new all-time high.

“Investors have played a major role in the current new home
building cycle, contributing a larger share of new housing supply than has
historically been the case,” HIA economist Diwa Hopkins says.

Conversely, the total number of loans to owner-occupiers
purchasing or constructing new homes remained relatively unchanged in the month,
and was 9.4 per cent lower than its peak in September 2014.

Hopkins also warns that the impact of tighter investor
guidelines introduced by the Australian Prudential Regulation Authority (APRA)
are yet to be felt.

“We maintain our concern about recent APRA interventions –
there is a risk of disruption to new home building activity.”

According to the ABS,
New South Wales and the Australian Capital Territory were the only jurisdictions
to record increases in the owner-occupier result, at 0.7 per cent and 4.8 per
cent respectively.

Declines of
between 6.6 per cent (South Australia) and 29.7 per cent (Darwin) were recorded
across all other states and territories.


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