The fall in lending for Australian property purchase comes as no surprise, following the phasing out of the First Home Owners Grant Boost (FHOG), it has been claimed.
Figures from the Australian Bureau of Statistics indicate that commitments for owner occupied housing decreased by 1.1 per cent, while first home buyer commitments fell even further to 22 per cent as a proportion of the total in November.
Commenting on the figures, Real Estate Institute of Australia (REIA) president David Airey said that a series of interest rate increases by the Reserve Bank of Australia (RBA) also contributed to this decline.
He said: "First home owners have come down from a high of 28.5 per cent in May to the lowest since October 2008 when the Boost was introduced.
"This is why the REIA has argued that the RBA should not increase interest rates for a fourth time. There is no need for a further hit on borrowers, given the slow down already evident."
Figures from the Australian Bureau of Statistics indicate that commitments for owner occupied housing decreased by 1.1 per cent, while first home buyer commitments fell even further to 22 per cent as a proportion of the total in November.
Commenting on the figures, Real Estate Institute of Australia (REIA) president David Airey said that a series of interest rate increases by the Reserve Bank of Australia (RBA) also contributed to this decline.
He said: "First home owners have come down from a high of 28.5 per cent in May to the lowest since October 2008 when the Boost was introduced.
"This is why the REIA has argued that the RBA should not increase interest rates for a fourth time. There is no need for a further hit on borrowers, given the slow down already evident."
