For your specific use case it makes no sense as you keep the reference to the new Object after the loop. So there is no real alternative to your solution.
More generally speaking, creating short lived objects in Java is cheap* (apart from the hidden cost that the GC will run more often). In particular, the allocation is almost free and the time of GC mostly depends on the quantity of reachable objects - dead objects do not increase GC time for typical GC algorithms.
The JIT can also perform various optimisations if it detects that unnecessary objects are created.
Obviously, creating useless is not a recommended practice, but trying to reuse objects is often counterproductive.
As a practical example, you can have a look at this post which shows that creating a new set within a loop is cheaper than creating one before the loop and clearing it at each iteration.
* Thanks @RichardTingle for the link