Media Release – Residential Construction Loan Approvals Up In June

Newly released ABS data reveals that in the ACT, the total number of home loan approvals for new residential construction in June was up from the previous month.

Master Builders ACT CEO, Michael Hopkins said, “Recently released ABS figures detail a 33.3% increase in the total number of loans to owner occupiers for new dwelling construction from May to June 2020.”

“These figures highlight that since the implementation of the HomeBuilder scheme by Prime Minister Scott Morrison on June 4, confidence in the housing market has improved in the Territory,” he said.  

Mr Hopkins said, “Recent data shows that 37 applications have been received since the ACT Government signed onto the scheme. As predicted by the MBA in our submission to Government in May this year, HomeBuilder is providing a boost for the local residential sector.” 

“With new land prices so high in the ACT, home buyers need every bit of assistance available, including the $25,000 HomeBuilder grant and cuts to ACT stamp duty. The combination of the Federal and ACT Government cuts will save around $34,000 on a typical house and land purchase in Canberra,” he said.  

Mr Hopkins said, “The success of the stimulus measures that the MBA has called for demonstrates the benefits of supporting the local building sector through the current economic downturn.”

“The number of loans for new dwelling purchases was also up 41.8% in comparison to June 2019, signalling a positive trend,” he said.