Rates rises hit lending
LEADING indicators have revealed a 5.2 per cent fall in investment lending for housing in November last year, sending a clear signal of a cooling off in the housing sector.
In WA, investor finance continued to fall from its June 2003 peak, recording a further 9.9 per cent reduction in November.
Building industry body HIA has stated that the fall in investment finance in November, while coming off a record high, was a significant result.
HIA WA executive director John Dastlik said the outcome added weight to the already large body of evidence indicating that the housing sector was coming off the boil towards the end of 2003.
“In November last year, the month in which interest rates were first raised, investor finance fell by 5.2 per cent, housing finance for owner occupiers declined by 3.9 per cent, and building approvals dropped by 6.7 per cent,” he said.
“Add into the mix anecdotal evidence of a drop-off in auction clearance rates, display home traffic, and deposits on new homes, and it is clear that interest rate rises late last year had an immediate impact on home-buying sentiment,”
Figures recently released also showed that first-home buyer loans hit a new record low in November last year. In this period 7,591 loans were issued to first-home buyers, down from the average of just under 10,000 loans a month, recorded since mid-2000.
Mr Dastlik said the number of first-home buyers was significantly lower than the peak reached in August 2001, when 14,156 loans were issued.
Subiaco auction
THE Subiaco Redevelopment Authority is releasing 12 lakeside home sites in its popular Subiaco Rise residential estate for auction on February 14.
Lots on offer range from 196 square metres to 364sq m. Eight lots have been identified for three-storey residences, with the remaining four lots for two-storey homes.
Time Conti Sheffield director Paul Conti said he expected the auction to attract strong interest due to the prime location of the lots on offer.
“They are certainly some of the best on offer in the development and with the vista across Subiaco Common they are considered among the premium lots – therefore demand should be strong,” he said.
Mr Conti said properties in the Subiaco Rise development had already shown significant increases in value, and with only two more land releases planned for the year, opportunities to join the Subiaco Rise community were becoming rare.
The Valentine’s Day twilight auction starts at 5.30pm on Saturday February 14 in the sales marquee on Tighe Street, Subiaco.