MNI: Australia Oct Housing Finance Down, Trend Slows

     SYDNEY (MNI) - The number of loans for owner-occupied housing fell for the

second straight month, leading to a slowing in trend due mainly to slowing in

rate of growth for loans for established dwellings.

     The data show housing market activity continues to slow. This is also

evident in housing price data (CoreLogic), which showed a fall in prices in

Sydney and a moderation in price growth in Melbourne.

     Data published by the Australian Bureau of Statistics Friday showed the

number of loans for owner-occupied housing fell 0.6% m/m in October following a

revised 2.5% fall in September. The trend rate slowed to 0.3% m/m, the lowest

since April. The trend for loans for established dwelling also slowed to 0.3%

m/m, the lowest since 0.1% in May.

     In value terms, total loan growth rose 0.6% m/m, due to a 1.6% rise in

loans for investment housing and a flat outcome for owner-occupier loans. 

     From Housing Finance data for October published by the Australian Bureau of

Statistics on Thursday:

                                                 October               September

--------------------------------------------------------------------------------

                                      (M/M %, seasonally      (M/M %, seasonally

                                               adjusted)               adjusted)

Number of Owner-Occupied Dwelling                              -2.5(revised from

Commitments                                         -0.6                   -2.3)

MNI Median Consensus                 -2.8 (-0.5 to +4.5)

-Construction of Dwellings                          -1.4                    -2.1

-Purchase of New Dwellings                          -1.6                    +1.3

-Purchase of Established

Dwellings                                           -0.4                    -2.8

Value of Dwelling Commitments                       +0.6                    -1.8

-Owner occupied housing                              0.0                    +1.4

-Investment housing                                 +1.6                    -7.0

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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