The number of loan applications for the construction of new homes fell for the second consecutive month in April, according to the latest figures from the Australian Bureau of Statistics.
Loan commitments for new residential construction fell by 11.4% in the course of the month, after 14.8% in March.
“This is the first ABS data to show that we have passed the peak of construction growth due to HomeBuilder,” said Angela Lillicrap, an economist with the Housing Industry Association (HIA).
Monthly home loan moderation was observed in all states and territories.
Activity among first home buyers also weakened over the course of the month, with financing commitments from the segment falling by 1.9%.
“Until recently, first-time buyers were the driving force in the market, taking advantage of the low interest rates and various government incentives,” said Lillicrap.
Despite the decline in home construction financing commitments and the decline in first-time buyer activity, total value home commitments rose 3.7% for the month to a record high of $ 31 billion. The main reason for this was the 9.2% increase in loan commitments for existing apartments.
The value of home renovation loans increased 66.7% in the three months to April.
“Households have diverted money that would normally have been spent on overseas travel into buying a new home or improving their existing one,” Lillicrap said.