Access to Finance Hits Building Approvals

Published: Comments:
Business Business & Economy Political Property & Real Estate


“The trend of a cooling housing market, which has been evident throughout 2018, continued in the three months to September with approvals now 6.6 per cent lower than the preceding quarter,” stated Tim Reardon, HIA’s Principal Economist.

ABS data released today, shows that building approvals rose by 3.3 per cent in the month of September. Despite this increase they remain 11.1 per cent lower than in the same quarter in 2017.

“The housing market has been cooling modestly since a peak late in 2017 with the majority of the decline occurring on the apartment side of the market,” added Mr Reardon.

“The market is cooling for a number of reasons most notably due to constraints on the availability of finance.

“Finance has become increasingly difficult to access for home purchasers. Restrictions on lending to investors and rising borrowing costs have seen credit growth squeezed. Falling house prices in metropolitan areas have also contributed to banks tightening their lending conditions which have further constrained the availability of finance.

“In addition, a slowing in Australia’s population growth since June 2017 coincides with changes to visa requirements announced early last year. Since then, Australia has experienced almost a year of slowing population growth.

“Irrespective of all of these negative influences, the volume of approvals for new detached houses remain close to their strongest levels in 15 years, as the decline in approvals is occurring,” concluded Mr Reardon.

Total seasonally adjusted dwelling approvals in the September quarter fell in South Australia (-21.2 per cent), Western Australia (-8.7 per cent), Victoria (-8.4 per cent), New South Wales (-7.5 per cent) and Queensland (-4.2 per cent).

Seasonally adjusted approvals increased in Tasmania by 8.5 per cent. In trend terms, total dwelling approvals in the September quarter decreased by 7.5 per cent in the Northern Territory and by 2.3 per cent in the Australian Capital Territory.

Housing Industry Association Limited :
Level 1, 84 Wises Road, Maroochydore
07 5451 9300
1902 973 555
Housing Industry Association Limited
Showing 4 recent articles for this business
First Home Buyers Are Not Winners in Housing Tax Policy 03 May 2019 | The Federal Opposition contradicted its own housing policy this week when it said that proposed changes to negative gearing and capital gains tax won’t have an appreciable impact on the price of housing, acco... More information...
Leave Capital Gains Tax and Negative Gearing Alone 04 April 2019 | A report released by the Housing Industry Association today shows that the majority of Australian voters do not understand Labor’s proposed changes to capital gains tax and negative gearing. It also shows that... More information...
New Home Sales Trend Downwards 01 April 2019 | “New home sales remained subdued in February, with just a 1.0 per cent increase across Australia, against a downwards trend that has been evident since the end of 2017,” stated HIA’s Chief Economist, Tim... More information...
Building approvals lowest in 5 years 04 February 2019 | Building approval data released today shows that the slowdown in building activity accelerated at the end of 2018,” stated HIA Principal Economist, Tim Reardon. More information...

comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service