Loans for 2135 owner occupier new homes were approved throughout Victoria in February, higher than both the previous month and the same time last year.

In positive news for homebuilders, there were nearly 1350 loans approved for owner occupier buyers wanting a new home built – 9.4 per cent more than January and 11.8 per cent higher than in February 2013.

Loans ticked off for buyers purchasing newly built homes were lower in February compared to January, but were still up when compared to last year.



Source: ABS 5609.0

The news follows recently released data showing a spike in year on year home building approvals across the state.
Some 17.9 per cent of loans for owner occupiers were for either newly built or off-the-plan homes, representing the best result for the state since March 2013.

“It’s heartening to see more Victorians looking to buy a new home over an existing one, providing greater opportunities for both large and small homebuilders to strengthen their sales and grow their businesses,” said Radley de Silva, Chief Executive Officer of Master Builders.

“We are seeing a range of positive signs pointing to a healthy, welcomed recovery in the homebuilding market.

“We are seeing constant reports in the media of a spike in real estate prices for established homes, so it is very attractive time for consumers to look at purchasing a new home instead.

“The average loan size for Victorians buying an off-the-plan home is around $270,000, which is $54,000 less than that needed for an established home.”

Master Builders has outlined a range of reforms it would like to see undertaken by all levels of government to help boost the purchasing of homes built by its members, including:

• Calling for an independent housing affordability inquiry to recommend ways to cut the high taxes and charges applied to new homes;
• Recommending sufficient land supply is available for housing developments, with Planning Minister Matthew Guy recently confirming a 50,000 lot land supply target for 2014;
• Advocating for a more streamlined planning process with less red tape; and
• Lobbying for changes to first home owner grants that reward Victorians buying a newly built or off-the-plan home, which the State Government introduced on 1 July 2013.

Disappointingly, the number of owner occupier loans approved for Victorian first home buyers across the property market has again fallen, representing just 11.8 per cent of the market in February compared to 12.5 per cent nationally.

Just over 1400 first home buyers had loans approved for the month, compared to nearly 1500 the previous month and nearly 2000 in February last year.

Source: ABS 5609.0