Finance for new housing slows

The latest housing finance data for June 2015 shows that the growth in housing finance for new dwelling is slowing.

While the number of home loan approvals rose by 4.4. per cent seasonally adjusted, finance approvals to build and buy new housing fell by 0.4 per cent and 0.8 per cent respectively.

“Master Builders expects residential building to remain strong but a moderation in housing finance is not unexpected as the cycle matures. The impact will gradually be felt in home building in due course,” Peter Jones, Chief Economist of Master Builders Australia said.

“Master Builders will be closely monitoring the results of the Australian Prudential Regulatory Authority’s (APRA) crackdown on credit for property investors,” he said.

“The resulting remix by the banks from investor to owner-occupied demand will become more apparent over the next few months,” Peter Jones said.

“The authorities need to be careful as they attempt to avoid risks attached to rapid house price inflation, particularly in Sydney and Melbourne,” Peter Jones said.