Friday’s lending indicators data posted a sharp decline in loans for new dwelling construction, which fell for the second consecutive month by a combined 21% from February’s peak:
Nevertheless, they remained 72% higher year-over-year.
There are 811 words left in this subscriber-only article.
Start your free 14-day trial today!
According to the Housing Industry Association:
“This is the first ABS data to show that we are past the peak in the surge in construction due to HomeBuilder,” [said Ms Lillicrap].
“The cooling in construction loans is consistent across all the states and territories”.
That said, annual dwelling approvals continue to rebound, driven by detached houses where approvals are running well above the historical average, offsetting recent heavy falls in apartment approvals:
Therefore, dwelling construction should remain strong for the remainder of the year given approvals lead commencements and completions.
The big slowdown will come in 2022 as the pull forward of demand from HomeBuilder ends.