GROWING FINANCE COMMITMENTS GOOD NEWS FOR CONSTRUCTION
Written on the 18 July 2013
INCREASING finance commitments for owner occupiers corresponds with Master Builders’ forecast 32,000 dwelling commencements next financial year.
Latest Australia Bureau of Statistics Building Activity figures show 9.1 per cent growth in finance commitments for owner occupiers from January through to May 2013 and a 3.9 per cent increase on April.
Deputy Executive Director, Paul Bidwell says the trend is expected to continue.
“The 9.1% increase in finance commitments is a welcome sign of gradually increasing consumer confidence,” says Bidwell.
“Master Builders expects this will translate to more building activity in the coming months.
“Given these figures, our forecast of 32,000 dwelling commencements in 2013–14 is off to a pretty good start.”
Despite the growing positivity, there are concerns the 6.4 per cent unemployment rate will have a possible dampening effect.
Master Builders predicted 28,000 dwelling commencements in the 2012–13 financial year and looks set to hit the mark.
“We are now sitting at 21,127 dwelling commencements for 2012–13, with 6,148 in the March quarter alone,” says Bidwell.
“Come the June 2013 figures, we are confident that our target will be met, if not exceeded.”