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Construction activity lending starts to ease

By Louise Morrin

There's a chance that fewer properties in Bexley could be built over the coming months, as it emerges that lending for dwelling construction witnessed a decline.

Figures from the Australian Bureau of Statistics (ABS) showed that the value of loans fell in May across the combined owner occupier and investor segments. Over the course of the month, the total value of lending was down 3.2 per cent, the Housing Industry Association (HIA) explained, but nevertheless remains 11.5 per cent higher than 12 months earlier.

HIA economist Diwa Hopkins suggested that the effect of the Reserve Bank of Australia's (RBA) rate cut decision had not been as positive as many analysts had hoped.

"The decline in May occurred despite the RBA's reduction in the official cash rate to a fresh historic low of two per cent," she commented.

"Nevertheless, the full effects of this reduction will take some time to fully wash through to private lending activity."

Investors with their sights set on construction property could find their fortunes are a little more positive. Although a 5.4 per cent fall in the value of lending to owner occupiers was registered, the amount of loans granted to investors were up 1.6 per cent month on month.

Even in light of the ABS figures, the HIA is still optimistic that construction will continue to play an important role in the future of the economy. As the downturn in resources output continues, other sectors will need to step up to the plate in order to address the imbalance.

If you're interested in buying property in Bexley, old or new, make sure you speak to the team at Ray White Carlton. We're here to point you in the right direction and help you find a home that suits your needs.

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