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QLD tops the nation for new home loans

16 May 2017 local real estate 0 Comment

home-loan

QUEENSLAND has topped the nation when it comes to loans for new homes, according to the latest Australian Bureau of Statistics figures.

The latest housing finance data found lending to owner-occupiers to build or buy a new home in the state increased by 10.9 per cent during the March quarter — higher than in any other state or territory during the period.

In July, 2016, the Queensland government increased the first home buyers grant to build or buy a new home by $5000, but that expires on July 1 and reverts back to the original $15,000.

Nationally, lending for new homes rose 4.3 per cent during the month of March, following on from two straight months of declines.

“The increase in new home lending during the month was primarily driven by an increase in the number of loans to those purchasing new homes, which were up by 9.5 per cent in the month,” said HIA economist Geordan Murray.

Mr Murray said a growing number of apartment projects that had been under construction over the past couple of years were now reaching completion.

“This means that buyers who purchased off the plan are now reaching the settlement stage,” he said. “We expect to see lending in this part of the market continue to rise over the year ahead as more apartment projects reach completion.”

Owner occuper home loan approvals overall fell 0.5 per cent nationally in March, missing market expectations of a flat result.

In Queensland, they fell 2 per cent, in seasonally adjusted terms, during the month.

But the value of mortgages approved rose a seasonally adjusted 0.9 per cent to more than $33 billion during the month, while loans for investment housing lifted 0.8 per cent.

Mortgage Choice chief executive John Flavell expects home loan demand to remain strong.

The Australian Prudential Regulation Authority (APRA) in late March capped interest-only mortgage lending, setting off a fresh round of rate increases by the major lenders, with banks repricing their loan book to make interest-only and investor loans more expensive.

But Mortgage Choice chief executive John Flavell said home loan demand would likely remain strong despite a number of lenders making changes to their policies and pricing.

“The fact is, interest rates continue to hover around record lows,” Mr Flavell said.

“And, whilst ever this is the case, there will continue to be a fair degree of heat in the property market, which will help bolster demand and property values.”

CommSec senior economist Savanth Sebastian said the latest housing finance data suggested the sector was effectively in a holding pattern.

He said tighter lending measures adopted by the banking sector were resulting in more circumspect home buyers, but it was important to highlight that there was still activity taking place across the housing sector albeit at a more moderate pace.

 

LOANS FOR NEW HOMES IN MARCH

 

Queensland +10.9%

Tasmania +10.1%

Victoria +9.2%

South Australia +6.5%

New South Wales +3.8%

Northern Territory -35.5%

Western Australia -7.6%

Australian Capital Territory -2.4%

(Source: HIA)

 

Please remember to keep Professionals Local Real Estate in mind for all of your buying, selling, renting or property management needs – you can make contact via the following means:

Drop in: Calamvale Central Shopping Centre, Shop 37, 662 Compton Road, Calamvale QLD 4116
Phone: 07 3272 1000
Email: admin@professionalslocal.com.au
Website: http://www.professionalslocalrealestate.com.au/

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