Investor interest in new housing fell 26% in October: ANZ

See-sawing investor appetite for new houses fell sharply in October, according to the latest ABS housing finance figures.

Construction finance to investors decreased 26.2% over October, to be 2.1% lower in trend terms as the total value of loans for the purpose of building new houses decreased by 9%.

Demand from investors for construction finance has risen and fallen sharply over the past year, and has been broadly flat since mid-2008.

Owner-occupier construction finance was 2.7% lower in the month.

Source: ABS

The October decline follows a similar decrease in September taking the value of construction finance 8.9% lower than levels a year earlier, highlighting both the depressed current state of new housing and the poor outlook for 2012.

According to the most recent HIA - JELD-WEN New Home Sales Report, the total number of new homes (detached and non-detached) sold was down 8% over the three months to October.

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Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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