Young Journalists Club | Latest news of Iran and world

News ID: 43896
Publish Date: 10:59 - 10 October 2019
TEHRAN, oct 10_Approvals for new home loans in Australia jumped for a second consecutive month in August, in a sign that recent rate cuts and easier lending rules were boosting the housing market though activity elsewhere in the economy remained subdued.

Australia housing in 'mini-boom' but signs bleak elsewhere in economyTEHRAN, Young Journalists Club(YJC)_Home loans, a leading indicator for housing prices, showed a solid 3.2% gain in August to A$33.5 billion ($22.60 billion), Thursday’s data from the Australian Bureau of Statistics (ABS) showed. Home loans had risen 5% in July.

Lending to property investors increased 6%, the largest increase since September 2016.

While upbeat housing activity is likely to boost consumer confidence, which hit a four-year low this month it will also revive concerns about frothiness and a debt binge in the property market when the rest of the economy is still struggling.

Australia’s housing stock is valued at A$6.8 trillion ($4.83 trillion), or almost four times the country’s annual gross domestic product.

“This reinforces our view of a mini-boom,” in home prices and loans, said UBS economist George Tharenou.

Home prices enjoyed their biggest monthly jump in 2-1/2 years in September. Sydney and Melbourne prices climbed 1.7%, a rate of increase reminiscent of the bubble days of 2016.

Source :reuters

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