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Property market shows signs of life

The West Australian
Property market shows signs of life - property market - Australia

Australia's housing sector is showing tentative signs of improving, despite continued caution from property investors, economists say.

Official data released today showed that the number of home loans approved in August rose 1.8 per cent to 45,821.

That was from an upwardly revised 45,021 in July.

Economists had expected housing finance commitments to rise 1.5 per cent in August.

The Australian Bureau of Statistics said that total housing finance by value rose 0.6 per cent in August seasonally adjusted, to $20.301 billion.

St George economist Janu Chan said the result supported other recent housing sector data, suggesting that people were beginning to return to the market, particularly owner-occupiers.

"There is a definite upward trend in owner-occupier housing," she said.

"That's certainly encouraging for the housing market, and is also in line with the stabilisation in house prices that we've seen in many states.

"There are however, some signs of weakness - investor housing is quite soft, suggesting that investors are still quite cautious about getting back into the market, despite the stabilising house prices."


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