The total value of dwelling commitments, excluding alterations and additions, was flat in November 2017 compared with the previous month, while the seasonally adjusted series rose 2.3%, according the Australian Bureau of Statistics’ (ABS) housing finance data for November 2017.
The total value of owner-occupied housing commitments rose 0.1% to $14m. Rises were also recorded in commitments for the purchase of new dwellings (up 0.2% to $3m), and commitments for the purchase of established dwellings (up 0.2% to $29m). Meanwhile, a fall was recorded in commitments for the construction of dwellings (down by 0.9% to $18m).
“The seasonally adjusted series for the total value of owner occupied housing commitments rose 2.7% in November 2017,” ABS said.
In contrast, the total value of investment housing commitments dropped by 0.3% to $31m in November compared to the previous month. Drops were also recorded in commitments for the purchase of dwellings by individuals for rent or resale (down by 0.8% to $75m), and commitments for the purchase of dwellings by others for rent or resale (down by $22m to 2.3%).
A rise was recorded in commitments for the construction of dwellings for rent or resale (up 5.4% to $66m).
“The seasonally adjusted series for the total value of investment housing commitments rose 1.5% in November 2017,” ABS said.
Overall, the value of home loan lending rose for the second consecutive month in November, driven by the acceleration in owner-occupier and investor demand.
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