The Times Australia
The Times Real Estate

.

New home lending remains weak

  • Written by HIA

The ABS released the housing, personal and business lending data for May 2024 today, which provides the latest statistics on housing finance commitments.

“Lending for new home purchase and construction decreased by 3.3 per cent in the month of May,” stated HIA Senior Economist Matt King.

“There were 4,693 loans issued for the purchase and construction of new homes in the month of May in seasonally adjusted terms,” added Mr King.

“This leaves the three-month period to May 2024 with 13,988 loans for new homes, which is 7.9 per cent higher than in the previous quarterly period.

“Lending for new homes in the most recent three-month period to May 2024 is up by 8.8 per cent compared to the same time in the previous year.

“Lending for new homes remains around the lowest levels observed since interest rates began rising, and well below the 20-year average.

“This continued weak result in new home lending does not bode well for the supply and delivery of new homes to market in short to medium term.

“There were 66,818 loans issued for the purchase of established homes in the three months to May 2024 (in seasonally adjusted terms).

“This is up by 6.1 per cent compared to the same quarter in the previous year. Over the last year, lending for established homes has remained stable compared to new home lending.

“Lending to first home buyers continues to remain soft in the face of historic affordability constraints.

“The number of loans issued to first home buyers was down 3.3 per cent in May but was up 7.4 per cent in the three-month period to May 2024.

“All categories of home lending point to ongoing weakness in the new home market.

“Only 172,725 dwellings were completed in the calendar year 2023. With annual demand for housing sitting above 227,000 homes a year, and a resulting shortfall more than 50,000 homes a year, this will add further strain to historically high dwelling prices and rents across the country.

In original terms, the total number of loans issued in the three months to May 2024 for the construction or purchase of new homes rose in Western Australia by 49.0 per cent compared to the previous year. This was followed by Queensland (+13.9 per cent), Tasmania (+10.8 per cent), and New South Wales (+4.6 per cent). The other jurisdictions recorded a decline in lending for new homes, led by the Australian Capital Territory (-22.3 per cent), followed by the Northern Territory (-13.1 per cent), Victoria (-2.3 per cent), and South Australia (-1.7 per cent).

Property Times

Top Tips for Finding the Ideal Block to Build Your Home

There’s something deeply personal and exciting about building your own home. You’re not just choosing paint colours or furniture, you’re creating a space that reflects your lifestyle, your dreams, and your future. However, before you start sketchin...

The Home Buying Process Explained Step by Step

Buying a home is a thrilling milestone, but it can also feel like navigating a maze without a map. With paperwork, finances, and decisions at every turn, understanding the home-buying process is crucial for success. Whether you're a first-time buye...

Thinking of Selling Your Home? Here’s What You Need to Know

Selling a home is more than just putting up a “For Sale” sign. It’s a strategic process that involves preparation, pricing, and negotiation - all aimed at getting the best value for your property. Let’s go through the most important steps to take b...

Smart Ways to Earn Passive Income from Real Estate

Imagine making money without doing much work. You get paid even while you sleep, travel, or do fun things. This is called passive income. Indeed, real estate has great ways to do this. You don't have to be a landlord all day; similarly, you don't h...

Times Magazine

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Science Behind Reverse Osmosis and Why It Matters

What is reverse osmosis? Reverse osmosis (RO) is a water purification process that removes contaminants by forcing water through a semi-permeable membrane. This membrane allows only water molecules to pass through while blocking impurities such as...

Foodbank Queensland celebrates local hero for National Volunteer Week

Stephen Carey is a bit bananas.   He splits his time between his insurance broker business, caring for his young family, and volunteering for Foodbank Queensland one day a week. He’s even run the Bridge to Brisbane in a banana suit to raise mon...

The Times Features

Metal Roof Replacement Cost Per Square Metre in 2025: A Comprehensive Guide for Australian Homeowners

In recent years, the trend of installing metal roofs has surged across Australia. With their reputation for being both robust and visually appealing, it's easy to understand thei...

Why You’re Always Adjusting Your Bra — and What to Do Instead

Image by freepik It starts with a gentle tug, then a subtle shift, and before you know it, you're adjusting your bra again — in the middle of work, at dinner, even on the couch. I...

How to Tell If Your Eyes Are Working Harder Than They Should Be

Image by freepik Most of us take our vision for granted—until it starts to let us down. Whether it's squinting at your phone, rubbing your eyes at the end of the day, or feeling ...

Ways to Attract Tenants in a Competitive Rental Market

In the kind of rental market we’ve got now, standing out is half the battle. The other half? Actually getting someone to sign that lease. With interest rates doing backflips and ...

Top Tips for Finding the Ideal Block to Build Your Home

There’s something deeply personal and exciting about building your own home. You’re not just choosing paint colours or furniture, you’re creating a space that reflects your lifes...

The Home Buying Process Explained Step by Step

Buying a home is a thrilling milestone, but it can also feel like navigating a maze without a map. With paperwork, finances, and decisions at every turn, understanding the home-b...