Double-digit growth in lending finance for the construction of new homes points to much-needed sustained construction growth over 2015.
Lending finance figures released by the Australian Bureau of Statistics last week reveal a 9% increase in lending for the construction and purchase of new homes in December, and a 12.6% increase for the 2014-year.
The Property Council of Australia’s executive director of residential Nick Proud says this result will see residential development activity remain at peak levels throughout at least the 2015-16 financial year.
“The recent decision by the Reserve Bank of Australia to cut the official interest rate will likely drive these lending finance figures higher still eclipsing the current record levels.
“No other sector in Australia’s economy is demonstrating such robust and sustained growth. This is welcome news in the context of a decade-long high in unemployment and a slowing rate of economy-wide growth.”
However, Proud says concentrated and targeted national reform in 2015 of supply side efficiencies in land release, development assessment and reform of inefficient taxes such as stamp duty is urgently needed if we are to continue to create prosperity, jobs and strong communities.
“We simply can’t afford to see growth stall in this key sector of Australia’s economy: the ramifications on employment, housing affordability and government revenue would be extremely concerning,” he said.
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