{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research and forecasting Economics Housing outlook Tailored market research Economic reports and data Inspiring Australia's building professionals HOUSING The only place to get your industry news Newsroom
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host an HIA apprentice? Apprentice partner program Builder and manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies and tool insurance Paperwork gone digital Contracts Online HIA Tradepass HR Docs SafeScan - managing workplace safety Planning and safety services Building and planning services How can HIA Safety help you? Independent site inspections Trusted legal support Legal advice and guidance Professional services Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials and products Concrete, bricks and walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Hear what our apprentices say Advice for parents and guardians Study with us Find a course Get your builder's licence Qualifications Learn with HIA
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Get involved Become an award judge Join a committee Partner with us Get to know us Our members Our people Our partners Mates Rates What we do Mental health program Charitable Foundation GreenSmart
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Australian Housing Awards Awards program National Conference Industry networking Events
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Products Digital Australian Standards Contracts Online Shipping and delivery Purchasing terms & conditions
About Contact Newsroom
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Change location
{{propApi.text}} {{region}} Change location
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Construction loans remain elevated in August

Media release

Construction loans remain elevated in August

Media release

“The number of loans for the construction of a new dwelling fell by 4.9 per cent in August but remains elevated compared to pre-COVID levels,” stated HIA Economist, Tom Devitt.

The ABS released the Lending to Households and Businesses data for August 2021 today. The publication presents statistics on housing finance commitments including for the purchase or construction of new dwellings.

“The number of loans for the construction of new homes has continued its decline since the end of HomeBuilder in March,” added Mr Devitt.

“Despite these declines, the number of loans still remains up by 51.0 per cent in the three months to August 2021 compared to the same period two years ago.

“This will ensure a solid pipeline of home building work and associated employment well into the second half of 2022.

“First home buyer activity has also remained elevated and they now account for 35 per cent of the market. This remains above the average of the last decade as they take advantage of record low interest rates.

“Investor activity is also returning to long term trends with lending to investors rising by 1.5 per cent in August. Investors now account for almost one-third of the value of loans issued. This remains well below the peaks seen pre-COVID when macro-prudential restrictions were introduced.

“Lending for home renovations however, remains exceptionally high. The value of loans issued for renovations in the past three months is 122.7 per cent higher than the same period last year. This has been driven by record household savings and structural shifts as we spend more time at home,” concluded Mr Devitt.

Across the states, the number of loans to owner-occupiers for the construction of a new dwelling in the three months to August 2021 compared to the same time last year has increased in almost all jurisdictions:

- South Australia by +69.6 per cent

- The Australian Capital Territory by +61.3 per cent

- Western Australia by +48.0 per cent

- Tasmania by +44.2 per cent

- New South Wales by +27.8 per cent

- Victoria by +27.5 per cent

- Queensland by +20.0 per cent

- The Northern Territory is down by 48.0 per cent.


For further information please contact:

Tom Devitt, Economist                      0439 514 656

Tim Reardon, Chief Economist         0423 141 031 

Breaking news
View all $vuetify.icons.faArrowRight
14 Jan
Demand for housing and first homebuyer activity remain strong

The value of loans, excluding refinancing, issued for housing towards the end of 2021 was elevated as demand remains very strong.

11 Jan
Ongoing COVID-19 restrictions for the Northern Territory

Lockout across the Territory to end as expected, except for the localities of Yuendumu and Yuelamu.

10 Jan
Building approvals strengthen in November

The number of building approvals issued in November 2021 increased by 3.6 per cent with both detached and multi-unit approvals increasing for the month.

10 Jan
Mandatory facemasks for indoor areas in the ACT

The ACT Government has reintroduced mandatory facemask requirements for indoor areas which includes building sites and offices.