TEHRAN, 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.