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Surge in finance for new housing

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3 rd Flog

C o n s t r u c ti o n H o u s e

217 N o r t h b o u r n e A v e .

11 December 1996 T u rn e r, C a n b e r r a A C T 2601

Tel: (0 6 ) 2 4 9 1433 F ax: (0 6 ) 249 1373

SURGE IN FINANCE FOR NEW HOUSING Statement by Wilhelm Harnisch, National Director Economics & Housing

The ABS housing finance figures for October 1996 indicate that the reduction in mortgage interest rates has had a positive effect in stimulating demand for new housing. In seasonally adjusted terms the number of loans written for the

construction of dwellings rose by 13.1 per cent over September 1996.

The October increase is consistent with forecasts and anecdotal evidence that the housing industry is now on a recovery path. Housing finance is a leading indicator of new housing activity and the October result augurs well for house builders in 1997.

It is expected that the 6 November reduction in interest rates will further stimulate demand for housing. Housing finance needs to continue to rise over the remaining financial year if industry activity is to return to more profitable levels.

For further information contact:

Wilhelm Harnisch BH: (06) 249 1433 Mobile: 015 484 300

Master Builders

Australia Incorporated

A.R.B.N. 008 383 453 Incorporated in

South Australia with

limited liability