New loan commitments for housing rose 4.4 percent

Released
11/02/2020

The value of new loan commitments for housing rose 4.4 per cent in December 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics figures.

ABS Chief Economist, Bruce Hockman, said: “Strong growth in the value of new loan commitments for housing during the second half of 2019 has seen the series increase 20.7 per cent from the most recent low point in May 2019. New loan commitments for owner occupier housing was the predominant driver of this growth, up 22.8 per cent since May 2019.

“The value of new loan commitments for investor housing, while tracking upward over the past six months, remained down on the March 2017 peak.”

The number of loan commitments to owner occupier first home buyers rose 6.2 per cent in December following subdued first home buyer activity over the prior three months. December’s rise was the second strongest of 2019 with owner occupier first home buyer commitments up 21.3 per cent on December 2018.

The value of personal finance fixed term loan commitments rose 3.5 per cent in December following a 1.1 per cent fall in November and were up 7.9 per cent on December 2018.

In trend terms, the value of new loan commitments to businesses for construction fell 0.2 per cent in December. The value of new loan commitments to businesses for the purchase of property fell 0.5 per cent.

More information is available in Lending Indicators, Australia (cat no. 5601.0).

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