Australia home loans fall record 15.5pct by value in September quarter amid investor exodus
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.
Australia witnessed a record 15.5% drop in home loan values in the September quarter, driven by higher borrowing costs and proposed changes to taxes on investment properties, according to the Australian Bureau of Statistics. The total value of new home loans fell to A$81.16 billion (US$55.6 billion), marking the third consecutive quarter of declines.
Loans for owner occupiers decreased by 5.3%, while those for investment properties dropped a significant 32.3%. This trend underscores the impact of interest rate hikes on the economy, with the largest quarterly fall since data began in late 2002.
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