Investor interest in Australian property fades
Tuesday 20 April 2004
SYDNEY: Australians borrowed less money to invest in residential property for the fourth straight month in February, reinforcing the central bank's view that the risk from a credit boom is diminishing.
By The LandlordLending for the purchase of dwellings by individuals for rent and resale fell 3.7 per cent in February, the Australian Bureau of Statistics reported. In January, such lending dropped 13.6 per cent.
The figures are seasonally adjusted.
The report comes a day after Reserve Bank of Australia Governor Ian Macfarlane said risks from excessive credit growth and rising home prices had become "less menacing," making life easier for policy makers in 2004.
Economists said Macfarlane's Wednesday night speech indicated the bank would hold rates in coming months but may tighten policy again later in 2004 if the housing market were to rebound.
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There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.