Record level of loans for construction of new homes, building approvals over 10,000 in September

Today’s Australian Bureau of Statistics lending indicators data for September 2020 shows the number of loans for the construction new dwellings increased by 27.1 per cent, rising to the highest amount since the ABS began collecting this data in 2002.

Also today, the ABS building approvals data for September 2020 showed total number of dwelling approvals rose by 15.4 per cent in September 2020, to be 8.8 per cent higher than a year ago.

Building approvals for private sector houses were up 9.7 per cent, with over 10,000 approvals recorded for the first time since June 2018.

These latest resounding results demonstrate yet again that the Morrison Government’s HomeBuilder programme is delivering the right support to our vital construction industry.

Housing Industry Association Chief Economist Tim Reardon said of today’s record lending figures;

“HomeBuilder was designed to provide consumers with confidence to return to the detached housing market. It has been very effective at achieving this goal.”

“It is evident in today’s data that HomeBuilder has been successful in creating work on the ground in the December quarter. This will protect jobs in the construction industry and the wider economy.”

Chief Executive of the Property Council of Australia Ken Morrison said today HomeBuilder is doing its job to stimulate activity and keep people employed;

“HomeBuilder has been the popstar of government stimulus policies released to date: highly effective, immediate and great value for money.”

“It has helped protect hundreds of thousands of jobs and stimulated activity right at the time the economy needed it most.”

Today’s record ABS lending indicators data and building approval rises are in line with other leading indicators that show HomeBuilder is working to support and protect the jobs of the one million Australians in the construction industry, for example;

  • The Housing Industry Association New Home Sales data for September 2020 shows in the four months since HomeBuilder was announced, new home sales have risen 49.8 per cent compared to the four months to June 2020. The data also shows sales have been higher in each month since HomeBuilder was announced than any month in the past two years.
  • HomeBuilder has seen first home buyers flood into the housing market with the number of loans to first home buyers reaching the highest number in over a decade. The total number of owner occupier first home buyer loan commitments rose 6.0 per cent, reaching 13,040, seasonally adjusted. This represents 40 per cent of the total number of owner occupier loans issued in September.

Across the board the construction industry is saying that HomeBuilder is delivering for Australia’s tradies and home buyers, which is driving stimulus in the economy at a time its needed most.

The Morrison Government is committed to doing all we can to help Australians get into a home of their own as part of our Economic Recovery Plan for Australia.

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