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New Home Sales Fall Due to Tighter Lending Standards by Major Banks

By Admin | Oct 29, 2015 at 10:50 am | 0 Comments |

Because of tighter lending standards by major Australian banks in accordance with the APRA guidelines, the home sales have a dip in this year, as per the data released by HIA. The new home sales got down by 4% in the month of September, whereas it got a rise of 2.3% in month of August.

At this, HIA economist Diwa Hopkins said, sales activity has trended only very modestly lower and remained historically high, boding well for actual new home building activity in the current financial year.

She further added, “There is a decline but, overall, the level of activity is still only just below the recent peak and there’s still a strong pipeline of work yet to commence construction. Increasingly restrictive credit conditions are likely to curtail the boom in new home building“.

In addition, detached house sales got 3.6% in September, with falls in four of the five mainland states. Multi-unit sales slumped 5.3%. It has been expected that in the coming time price growth and rents have to be scaled back in most states, and Queensland is tipped to lead the country for price and rental growth over the next year or two.

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