Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

New home loans soar again, shattering recent records

  • February 02 2021
  • Share

Invest

New home loans soar again, shattering recent records

By Maja Garaca Djurdjevic
February 02 2021

The total value of loan commitments for investor housing rose 8.2 per cent month-on-month to reach $6 billion in December last year, as the property market continued to soar into 2021.

New home loans soar again

New home loans soar again, shattering recent records

author image
  • February 02 2021
  • Share

The total value of loan commitments for investor housing rose 8.2 per cent month-on-month to reach $6 billion in December last year, as the property market continued to soar into 2021.

New home loans soar again

The Australian Bureau of Statistics (ABS) has revealed a surge in loan commitments for investor housing, with an 8.2 per cent monthly increase and 10.9 per cent yearly growth in December.

Overall, the ABS reported a new record-high total value of new loan commitments for housing, with an extraordinary yearly growth of 31.2 per cent, with owner-occupier home loan commitments leading the upward charge with a 38.9 per cent rise compared with December 2019.

The sum of new loan commitments for housing in December stood at $26.01 billion, recording a seasonally adjusted growth of 8.6 per cent, while that of new owner-occupier home loan commitments increased 8.7 per cent to $19.94 billion.

ABS head of finance and wealth Amanda Seneviratne said: “Loan commitments for existing dwellings accounted for 53 per cent of December’s rise in owner-occupier housing loan commitments, while construction of new dwellings accounted for 32 per cent.”

Advertisement
Advertisement

“The value of construction loan commitments grew 17.1 per cent in December, more than doubling since the June implementation of the HomeBuilder grant.

“Federal and state government measures, such as HomeBuilder, and historically low interest rates are supporting ongoing growth in housing loan commitments,” Ms Seneviratne said.

The number of owner-occupier first home buyer loans rose 9.3 per cent, a 56.6 per cent rise since December 2019.

This is the highest level since June 2009, when similar rapid growth was spurred by the temporary tripling of the First Home Owner Grant to help combat the global financial crisis.

States and territories

The value of owner-occupier home loan commitments rose across most states and territories. 

Victorian owner-occupier home loan commitments rose sharply, up 20.1 per cent in seasonally adjusted terms in December, after a 19.6 per cent rise in November. This reflects a resurgence in housing market activity that began in October as COVID-19 restrictions were eased in Victoria.

New home loans soar again, shattering recent records
New home loans soar again
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

About the author

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.