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    Low interest rates boosting home loan demand and value, says Mortgage Choice

    Mortgage Choice

    New data from the Australian Bureau of Statistics reveals positive trends in the property market as indicated by the rising demand for home loans in July.

    According to the latest Housing Finance data from the Australian Bureau of Statistics, 52,251 loans were approved in seasonally adjusted terms over the month of July, up 0.3 per cent from 52,074 loans written the previous month.

    While the number of loans approved for the construction of new dwellings slid 1.3 per cent over the month of July, the number of loans approved for the purchase of new dwellings and established dwellings both grew, climbing 0.5 and 0.6 per cent respectively. The total value of all loans written grew 2.7 per cent over the month in seasonally adjusted terms.

    Mortgage Choice spokesperson Jessica Darnbrough is not surprised to see a significant jump in the value of all loans written, attributing it to rising property prices, which climbed 1.6 per cent across the combined capital cities in July.

    According to research conducted by RP Data, property values climbed in Sydney, Melbourne, Darwin and Canberra throughout the month of July, with Melbourne leading the pack by recording a 3.7 per cent increase in property values over the month, closely followed by Darwin, with 2.8 per cent.

    Ms Darnbrough said capital city dwelling values have trended higher since June 2012, with the combined capital cities recording 17.4 per cent growth in property values over this time. Since June 2012, Sydney values have moved almost 25 per cent higher, while Darwin and Melbourne have recorded growth of 20.4 per cent and 18.5 per cent respectively.

    Ms Darnbrough observes that the Australian property market is performing very well at the moment, proving attractive to buyers, which is reflected in the highs recorded in home loan approvals. With interest rates still at an all-time low, the Australian property market will continue to see strong demand for home loans.

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