First-home buyers defy decline in home lending
While the number of loans approved for residential property continues to fall across Australia, lending to first-home buyers is on the rise.
Housing finance figures for May indicate an overall 8% fall in the number of loans to 52,006. However the market share of loans to first-home buyers increased from 16.9% in April to 17.3% in May.
Some analysts say that the increase in first-home buyer activity can be attributed to the increased opportunities created by investors fleeing the property market and the incentive to escape spiralling rents and low vacancy rates.
First-home buyers have also received encouragement in various State Budgets with additional grant money and reductions in stamp duty. South Australian first homebuyers can look forward to a $4,000 grant in addition to the Federal Government’s $7,000.
New constructed homes in Victoria are eligible for a $5,000 bonus plus the federal grant. And from 6 May the First Home Bonus was extended to offer an additional $3,000 to purchasers of newly-constructed homes in regional Victoria. The new $3,000 regional bonus is additional to the existing $12,000 available for newly-constructed homes valued under $500,000.
The overall fall in housing finance was most noticeable in Tasmania where a drop of 19% was recorded. Other states recorded falls of 9% in Victoria, 9% in Queensland, 8% in the ACT, 7% in NSW, 6% in Western Australia, 5% in South Australia and 5% in the Northern Territory.
