Construction mortgages plumb 2013 lows

Advertisement

While mortgages for established dwellings are booming, the same cannot be said for construction mortgages, which are bouncing through lows not seen since 2013:

As shown in the chart above, mortgages for the purchase of newly built dwellings have rebounded strongly, commensurate with the lift in mortgages on established dwellings. However, construction mortgages were just 3233 in December, around the lowest seen since mid-2013.

This makes sense given the collapse in dwelling approvals and commencements, according to the ABS:

Advertisement

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.