Home building ramps up in end-of-year push

author-avatar By
on January 07, 2021
Home building ramps up in end-of-year push

The latest building approvals data from November shows construction of new private houses increased 6.1%.

According to the Australian Bureau of Statistics (ABS), private sector house approvals rose for the fifth consecutive month, and were at the highest-recorded level in 21 years.

New residential buildings increased 5.7% in value in November to more than $5.8 billion.

Private sector housing approvals rose in all states, with Queensland leading, up 17%. 

Total dwellings approved overall rose 2.6% in November in seasonally-adjusted terms, while unit or apartment (private sector excluding houses) construction fell 3.9%.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Rates correct as of January 21, 2022. View disclaimer.

The value of private sector housing built amounted to $3.83 billion in November, with 11,489 private houses built, for an average value of $333,432.

ABS director of construction statistics said aside from housing, dwelling construction is at a "subdued" level.

"Approvals for private houses have surged 40% since June. Federal and state housing stimulus measures and low interest rates have resulted in strong demand for detached dwellings," he said.

"Approvals for private houses rose 6.1%  in November, while dwellings excluding houses remain at subdued levels, falling 3.9%," he said.

Alterations value increased 5.6% to $855.4 million in original terms in November.

The total number of alterations and additions approved amounted to 10,328, for an average value of $82,821- under the $150,000 HomeBuilder renovation threshold.

This represents a slight fall from October's average renovation value of $82,922. 

HomeBuilder has coincided with an uptick in overall renovation activity, with figures trending upwards from lows of less than $700 million in April.

However, prior to the HomeBuilder policy being announced in June, in May 2020, average alteration value was $85,427 - higher than it was in November, albeit at much lower volumes (7,900 alterations approved in May).

Roughly 16% of renovations, according to ABS figures, fell within the HomeBuilder thresholds, for a total value of just under $440 million out of a total $855 million.

Housing Industry Association (HIA) economist Angela Lillicrap pointed to a promising 2021.

"HIA new home sales data suggests that detached house building approvals will continue to be strong over the coming months," she said.

"The extension of HomeBuilder at the end of November is not a factor in this month’s result but will see the strength in detached house approvals extend into 2021."


Photo by R ARCHITECTURE on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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