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 per cent by value in the September quarter to A$81.16 billion (US$55.6 billion), for a third straight quarter of declines.
The number of loans dropped 15 per cent in the quarter.
Loans for owner occupiers fell 5.3 per cent by value, while those for investment properties dropped a steep 32.3 per cent.
The ABS said the headline drop of 15.5 per cent was the largest quarterly fall since data began in late 2002, driven by investors.