Tassie home-loan boom

TASMANIA leads the nation in new home loans following an increase of almost 40 per cent in lending in June, Housing Industry Association research has found.

Compared with 12 months ago, the number of loans to owner occupiers for the construction or purchase of new dwellings increased in all states and territories in June.

The largest increase was 38 per cent in Tasmania followed by 29.5 per cent in Queensland and 23.8 in the ACT. In NSW, the increase was 5.8 per cent and, in Victoria, 3.5 per cent.

HIA Tasmania executive director Rick Sassin attributed the increase to continued growth and confidence in the residential building industry.

Mr Sassin said other factors included the continuation of the $20,000 first homeowner grant and stamp-duty relief.

“These are the types of deci- sions that the State Government is making as a result of the close and committed consultation process being taken with our industry, he said.

“A low interest rate environment and improved unemployment results across the state are all adding to the consumer confidence level.”

Real Estate Institute of Tasmania president Tony Collidge said the reported increase was consistent with the number of properties sold lately.

He said the increase could be attributed to economic boosts, consumer confidence, low housing prices in Tasmania and low interest rates encouraging people to buy.