Property News

No Case For Interest Rate Rise - HIA

16 January 2007

Despite Australia’s robust labour market, there are worrying signs ahead for Australia’s $60 billion housing industry.

Figures released today show that housing finance for owner occupiers fell in value by 0.9 per cent to $13.6 billion in November. Of more concern however, is that despite a very slight rise in finance to property investors over the month, the trend remains in steep decline at a time when rents are skyrocketing and vacancy rates are at record lows.

Australia’s peak housing body, HIA, said that these figures coupled with the falling trend in building approvals demonstrate that the industry was already in decline before the last interest rate increase of 2006.

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