Construction loan figures show promise in Western Australia

The Housing Industry Association (HIA) has offered comments about the latest Australian Bureau of Statistics (ABS) data relating to home lending activity across the nation.

For those contemplating a construction home loan or perhaps a mortgage refinance, the latest statistics may be of interest.

Industry commentator sees growth potential

"There is still upward momentum to lending for the construction of new dwellings, even allowing for a decline in the seasonally adjusted number and value of such loans in the month of April 2014," said Harley Dale, chief economist for the HIA‚Äč, in a June 10 statement.

However, Dr Dale noted the latest ABS data indicates that future growth is tipped for low density and detached dwelling construction.

In the three months to April, construction loans rose by 5.4 per cent, Dr Dale said.

This brings the total number of construction loans to the largest quarterly level since the beginning of 2010. With regards to the value of these loans, "the profile is very similar", he said.

"This positive profile for new dwelling construction by owner occupiers is complimented by the value of lending for investment in new rental stock being at its highest since before the [global financial crisis]."

Strength of the west

In Western Australia, home lending figures for April were higher than the same time the previous year.

Though owner-occupier lending figures for new homes and new dwelling construction decreased by 0.6 per cent between March and April, the sentiment for Western Australia is very positive, according to John Gelavis, HIA regional executive director for Western Australia.

"Despite the modest decline, today's housing finance figures confirm residential building activity in WA is in a solid position mid-way through 2014," he said.

"Indeed, leading indicators suggest that we may build more homes in WA during 2014 than we have in any other year on record. If it is not a record, it will be very close."

If you're planning on building, be sure to check out the construction loans available, no matter where in Australia you're based.

Image credit: kathi_gott