Released 15 May 2012



The March 2012 ABS Housing Finance figures show a modest improvement in new home lending with New South Wales leading the way, according to the Housing Industry Association. 

HIA Senior Economist Andrew Harvey said the number of loans for the construction or purchase of new homes lifted by 3.5 per cent in the month of March.

“The March figures reflect a period prior to the 50 basis point cut in interest rates which occurred in May, and although the cut was only partiallly passed on by Australia’s banks, this factor should act to spur a further modest improvement in new home lending in the coming months,” he said.

“However, while the 50 basis point rate cut was the correct call, more is needed in terms of further rate cuts and also housing supply reform by the state and Federal governments. We need to keep in mind that new home lending figures show that there are around 2,000 fewer loans each month than there would have been if the longer-term pre-GFC trends in housing finance had continued.”

The total number of seasonally adjusted loans for owner-occupied new homes rose by 3.5 per cent in March 2012, driven by a 13.3 per cent increase in the number of loans for the purchase of a new dwelling. Lending for the construction of dwellings was basically flat (up by 0.2 per cent).

New South Wales was a key driver of the national result with the March 2012 seasonally adjusted number of loans for new housing (construction and purchase of new) up by 13.6 per cent.

Elsewhere, Victoria rose by 1.7 per cent, South Australia by 0.5 per cent, Western Australia by 1.9 per cent, Tasmania by 7.3 per cent, the NT by 19.3 per cent and the ACT by 12.1 per cent. Queensland was the only jurisdiction which saw new home lending fall in the month of March (down by 2.0 per cent).