Growing home lending figures in Western Australia highlight construction rise
Anyone interested in buying land in Western Australia and building their own residential property could be intrigued by a recent release from the Housing Industry Association, which highlighted the rising home lending figures occurring across the state. As the market continues to strengthen, this could provide a great opportunity for those looking into the Western Australia market for a plot for their dream home.
Taking into account the number of home loans taken out for the purchase of new homes, as well as the construction of properties and purchase of established real estate, the overall lending figures for Western Australia rose by 2.5 per cent over February 2014 alone. More specifically, there was a 10.5 per cent growth in the number of construction loans, while the number of mortgages sought for established property grew by 1.4 per cent.
HIA Acting Regional Executive Director Western Australia John Gelavis said housing finances was one of the main indicators for testing the strength of the residential property and should be monitored as a key representation of the overall growth of the property industry in Australia.
"For the last few years HIA have continually pointed to the fact that housing supply in Western Australia was responding far too slowly in response to the state's rapidly growing population. Only now are we finally starting to see the levels of new home building that we should have been seeing for the last three years," said Mr Gelavis in an April 10 statement.
"In order to repair the damage done to housing affordability policy makers must ensure these levels of home building are sustained. The state has a lot of catching up to do."
This follows a nationwide growth in housing finance, as the residential building industry continues to rise in strength. A recent Master Builders Australia (MBA) release highlighted this, with MBA Chief Executive Officer Wilhelm Harnisch stating these market movements will help alleviate the pressures on the property industry and aid the recovery of the real estate landscape.
This follows a 20 per cent increase in the amount of home lending seen over the last 12 months.
"This level of home lending augurs well for the residential building recovery and will be reflected in the forthcoming GDP data and more importantly in increased employment as the building industry hires more people during the building phase," said Mr Harnisch in an April 9 statement.