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Housing finance accelerates in April

By Brett Pilgrim

For investors wondering what kind of real estate in Adelaide could best suit their long-term ambitions, a new property could well be the way to go – especially if you're fresh to the investment game. Freshly constructed houses have been springing up all over the country of late and it seems as though buyers in the South Australian capital have their eyes set on this category of home. 

The latest housing finance figures from the Australian Bureau of Statistics (ABS) and the Housing Industry Association (HIA) have shown a jump in the quantity of commitments for newly built homes in the City of Churches. This was generally seen across the country, which HIA chief economist Harley Dale said is a great sign for construction activity.

Dr Dale pointed out that there was a 4.3 per cent jump in the quantity of loans for the construction of owner-occupied homes during April in seasonally-adjusted terms. There was also a smaller, but still positive, increase in the number of commitments for the purchase of new homes. South Australia saw the flow on effects of this activity, with the volume of owner occupier loans for new housing rising 1.6 per cent for the quarter.

This puts the state in a better position than Tasmania, the Northern Territory and Western Australia, which each saw commitments tumble in the April quarter.

First homebuyers active

What's more, first homebuyers seem to be becoming more active in the search for new homes and could even be taking a greater interest in rentals in Adelaide. The ABS data shows the the quantity of of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 15.2 per cent during April. Dr Dale also highlighted that this proportion doesn't include the number of young buyers purchasing rentals – in fact, the percentage could be higher.

"The number of first home buyer loans for owner occupiers remains low, but is running at its highest annual level in a year," Dr Dale said.

"Although that of course excludes those first time buyers entering the investment market."

If you're on the hunt for an investment property or a helping hand in managing your blossoming portfolio in the South Australian capital, get in touch with the team at Ray White Adelaide

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