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The ABS released the Lending to Households and Businesses data for October 2023 today, which provides statistics on housing finance commitments.
“Lending for the construction and purchase of new homes in October rose 1.8 per cent compared to the previous month.
“This leaves lending for the construction and purchase of a new home 22.4 per cent lower than at the same time the previous year and at their lowest level since the GFC,” stated Mr Reardon.
“This low volume of lending has been sustained since the start of 2023 and will see new home construction continue to slow through 2024, despite the need to increase the supply of new homes.
“This poor result was recorded before the rise in the cash rate in November.
“There is no justification for further rate increases. Leading indicators of activity all show that the rise in the cash rate will cause activity to slow in 2024.
“The RBA needs to pause on any further rate increases and wait for the full impact of their actions to date to flow through to the wider economy.
“Not only are rising rates making it harder to address the acute shortage of housing stock, but the loss of skilled trades from the building industry will also make a recovery in home building increasingly slow.
“The industry requires stable and reliable economic settings to avoid an ongoing market roller coaster,” concluded Mr Reardon.
In original terms, the total number of loans for the purchase of construction of new homes in the three months to October 2023 declined in all jurisdictions compared to the same quarterly period a year earlier, led by the Northern Territory (-58.2 per cent) and the Australian Capital Territory (-53.6 per cent) and followed by New South Wales (-29.3 per cent), Tasmania (-29.2 per cent), Victoria (-25.9 per cent), Queensland (-20.1 per cent), South Australia (-18.9 per cent) and Western Australia (-1.5 per cent).
HIA provided a submission into the Help to Buy Bill 2023 and the Help to Buy (Consequential Provisions) Bill 2023, herein referred to as the Help to Buy Bills.
“The upcoming Northern Territory budget presents a key opportunity for the Government to focus attention on measures to support increased housing supply and the delivery of much-needed homes in the Territory,” HIA Executive Director, Luis Espinoza said today.
New fast-tracked process to access land titles earlier for eligible developments.
HIA submitted the Northern Territory pre-budget submission to the NT Chief Minister.