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{{propApi.successMessage}} {{region}} Change locationLending restrictions should be eased
Lending restrictions should be eased
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“Just as tightening lending conditions have not seen a fall in mortgage delinquency, so too an easing in these conditions are not likely to see them increase,” added Mr Tapang.
The ABS released the Lending Indicators data for the December quarter 2024 today, which provides the latest statistics on housing finance commitments.
“Investors have been active in building new homes in this cycle, and increasingly, owner-occupiers have been slowly returning to market as well,” stated HIA Economist, Maurice Tapang.
“Lending for new housing has seen modest growth off a low base, consistent with expectations of a slow increase in home building in 2025,” added Mr Tapang.
“The number of loans to owner-occupiers for the purchase or construction of new dwellings were up by 0.8 per cent in the December quarter 2024 compared to the same period in the previous year.
“This brought the number of owner-occupier loans for new dwellings in the 2024 calendar year to 54,400, which was 5.2 per cent higher compared to 2023.
“Lending to investors building or buying a new dwelling grew more sharply, with 19.2 per cent more investor loans for new dwellings issued in the 2024 calendar year compared to 2023.
“Investors have been key early in this cycle in adding to new housing supply and increasing the volume of properties available for rent.
“As is typical of cycles of rising interest rates, the first to return to market are investors followed by trade-up owner occupiers, first home buyers and increasingly those building a new home.
“Owner-occupiers are slowly re-entering the market, with the number of loans issued up by 5.8 per cent compared to 2023.
“The rise in owner-occupier lending has been driven by both first home buyer lending, which increased by 5.5 per cent in 2024, and non-first home buyers which rose by 6.0 per cent over the same period.
“The Government’s lending restrictions have been tightened progressively over the past 15 years. This is despite mortgage delinquencies remaining exceptionally close to zero. If the Government seeks to ease lending restrictions to first home buyers
“Even without a cut to the cash rate, home buyers of all types from investors to first home buyers and non-first home buyers have already started coming back to the market,” concluded Mr Tapang.
The number of loans issued in 2024 to owner occupiers for the purchase and construction of new dwellings increased in Western Australia (+24.6 per cent), followed by Queensland (+16.1 per cent) and South Australia (+15.1 per cent). Declines over the same period were recorded in the Australian Capital Territory (-26.7 per cent), Victoria (-5.3 per cent), Tasmania (-4.8 per cent), the Northern Territory (-1.3 per cent) and New South Wales (-1.0 per cent).
HIA’s paper on Lending is a Risky Business
Owner-occupier lending for new dwellings
For more information please contact:
Home ownership gets even further out of reach for first home buyers in NSW
“Long-standing constraints on new home building in NSW, particularly land supply and planning system inefficiencies, are locking more and more first home buyers out of home ownership,” stated HIA Executive Director, NSW, Brad Armitage.
HIA welcomes government support to address the ‘Missing Middle”
HIA has welcomed the Tasmanian Government’s announcement of a Density Incentive Grant Scheme for medium and high-density housing developments.
Lending restrictions should be eased
“Restrictions on lending have been progressively tightened over the past 15 years making it increasingly difficult for banks to lend to first home buyers. Despite this increase in lending restrictions and the cost of lending, mortgage delinquency in Australia remains exceptionally close to zero,” stated HIA Economist, Maurice Tapang.
“Australia's housing crisis is driven by lip-service, hypocrisy and an investment culture”
In his article today, published on abc.net.au, Alan Kohler states: “In 1999 came the final death knell of housing as a "right", when it became an investment asset after the Howard government halved capital gains tax.”