Loans for the construction of new homes were up 10.9% in October, marking four straight months of increases since the HomeBuilder scheme was announced in July.
Figures from the ABS show that HomeBuilder is the biggest contributor to new owner-occupier housing loans, which are up 0.8% overall.
The value of monthly loan commitments jumped to $2.85 billion, which is a new record high.Most of the rising loan demand is attributed to first home buyers, which rose 3.1%. Investors, on the other hand, only rose 0.3%
The construction industry is thrilled. Mirvac’s CEO said the industry is unable to keep up with demand, and the Housing Industry Association said that they expect there to be further growth. HIA economists said “The extension of HomeBuilder will see strong results carry over into 2021.”
Which is great news for Australian real estate.