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Property cooling but still driv...

Property cooling but still driving the economy

The Australian property market is starting to slow, but it is still a major driver of the economy in the nation.
New governmental figures have shown that the boom in the Australian property market is starting to cool off at last, but it remains the biggest positive factor in the economy at present.

In the latest report from the Australian Bureau of Statistics, it was reported that the number of home loan approvals stayed static in May when compared to the month earlier.

While this shows that the market's growth period is now starting to cool off, it is still far stronger than was expected - experts had predicted a drop of 0.5 per cent in mortgage approvals for the month.

“Housing finance has flattened out at a pretty high level. It’s risen substantially and now, along with building approvals, it’s just taking a bit of a pause,” said ANZ head of Australian economics Justin Fabo.

He said that the number of sales and auctions across the nation are remaining high when compared to recent years, showing how the market is still an important part of the economy. 

A slowing in activity was also recently reported in the number of foreign buyers coming to buy homes in Australia, with a report stating that it dropped significantly in the second quarter of 2014. 

Posted by Craig Francis

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