New home loan commitments are decreasing in Tasmania in a potentially worrying sign for the state economy.
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Home loan commitments for owner occupation remained at high levels compared to recent years despite a 1.4 per cent drop to 1027 in March, according to trend terms Australian Bureau of Statistics figures.
Monthly commitments had been falling since October and were down by 0.5 per cent compared to March 2018.
Building and Construction Minister Sarah Courtney said the data showed the housing sector remained strong.
"The data shows that lending for the construction of new homes in the year to March 2019 grew 19.2 per cent in Tasmania compared to the previous year," Ms Courtney said.
"The number of first home buyers entering the market continues to grow, with 20.5 per cent more first home buyers in the year to March 2019 compared to the previous year.
"In the year to March 2019, nearly 2000 people bought their first home in Tasmania.
"Only yesterday, we announced we would extend the first home builders grant in the upcoming budget, to help more young Tasmanians into home ownership.
"We are also continuing to work through our Affordable Housing Strategy to provide more affordable homes to Tasmanians in need."
Treasurer Peter Gutwein said the latest NAB Monthly Business Survey showed Tasmanian businesses continued to enjoy the best conditions in the nation.
"Tasmanian business conditions are more than five times higher than the national average, in trend terms," Mr Gutwein said.
"The survey also revealed that, for the month of April, Tasmanian businesses are the most confident in the nation.
"This is welcome news as the Hodgman Liberal government prepares to hand down its sixth budget next week which will focus on ensuring that every region of our state benefits from a growing economy and continues to enjoy Tasmania's unique way of life."