SYDNEY: Australia recorded a record drop in new home loans in the September quarter as higher borrowing costs and proposed changes to taxes on investment cut demand, another sign interest rate hikes were working to slow the economy.
Wednesday’s data from the Australian Bureau of Statistics showed total new home loans fell 15.5 percent by value in the September quarter to AUSD81.16 billion (USD55.60 billion), for a third straight quarter of declines. The number of loans dropped 15percent in the quarter.
Loans for owner occupiers fell 5.3 percent by value, while those for investment properties dropped a steep 32.3 percent. The ABS said the headline drop of 15.5 percent was the largest quarterly fall since data began in late 2002, driven by investors.
Comments