Ensure you never miss an issue of the
real estate business bulletin
New building recovery at risk

New building recovery at risk

by Reporter 0 comments

Staff Reporter

Yesterday’s housing finance figures revealed an encouraging pick up in loans for new housing construction but the tenuous recovery remains at risk according to Master Builders Australia.

The number of loans for new housing construction rose by 2.7 per cent in November 2010, seasonally adjusted, Australian Bureau of Statistics figures showed.

“A solid increase in headline finance commitments in November confirms that the decline suffered in 2009-10 has been arrested, with finance related to new dwellings also on the improve,” commented Peter Jones, chief economist of the MBA.

“However, finance commitments remain at a low level and with the full impact of the latest rate rises hanging over it a fully-fledged recovery in residential building remains at risk.”

According to Mr Jones, the “interest rate senstitive” residential building industry remains in danger of becoming collateral damage as a result of “heavy handed” monetary policy.

“The weak underlying level of housing finance must be of concern to the federal government, as it prevents the residential building industry from meeting an undersupply of housing thereby risking higher rents and house prices as more people chase less stock.”



le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
New building recovery at risk
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?