Xinhua, Canberra :
Australian Treasurer Josh Frydenberg has called on the nation’s banks to do their part to reignite the declining housing market.
Property data firm CoreLogic on Wednesday released figures that revealed the national average dwelling price fell by 4.8 percent in 2018.
In Sydney and Melbourne, Australia’s two biggest property markets, the market fell by 8.9 percent and seven percent respectively.
Addressing the figures, Frydenberg called on Australia’s banks to reverse a recent downturn in the number of loans given to potential home buyers.
According to the Reserve Bank of Australia (RBA), the number of loans given to property investors has hit the lowest level since data was first collected in 1990. Lending to owner-occupiers has fallen to the lowest rate since 2015.
“Targeted and short-term interventions from the Australian Prudential Regulation Authority (APRA) in the housing market has, according to the RBA, increased the resilience of the economy to future shocks,” Frydenberg told News Corp Australia on Thursday.
“However, now these interventions have been wound back, it is vitally important that the banks continue to provide affordable and timely access to credit. Keeping open their loan books to borrowers will help maintain the strength of the Australian economy.”
The RBA’s interest rate has been steady at a record-low 1.5 percent since
August 2016.
However, economists have warned that the cut could be cut even further to
boost economic growth.
Australia’s sharemarket dropped seven percent in 2018, the worst annual
performance since 2011, and the Australian dollar dropped to about 69 U.S.
cents on Thursday morning, the lowest level since January 2016.
Australian Treasurer Josh Frydenberg has called on the nation’s banks to do their part to reignite the declining housing market.
Property data firm CoreLogic on Wednesday released figures that revealed the national average dwelling price fell by 4.8 percent in 2018.
In Sydney and Melbourne, Australia’s two biggest property markets, the market fell by 8.9 percent and seven percent respectively.
Addressing the figures, Frydenberg called on Australia’s banks to reverse a recent downturn in the number of loans given to potential home buyers.
According to the Reserve Bank of Australia (RBA), the number of loans given to property investors has hit the lowest level since data was first collected in 1990. Lending to owner-occupiers has fallen to the lowest rate since 2015.
“Targeted and short-term interventions from the Australian Prudential Regulation Authority (APRA) in the housing market has, according to the RBA, increased the resilience of the economy to future shocks,” Frydenberg told News Corp Australia on Thursday.
“However, now these interventions have been wound back, it is vitally important that the banks continue to provide affordable and timely access to credit. Keeping open their loan books to borrowers will help maintain the strength of the Australian economy.”
The RBA’s interest rate has been steady at a record-low 1.5 percent since
August 2016.
However, economists have warned that the cut could be cut even further to
boost economic growth.
Australia’s sharemarket dropped seven percent in 2018, the worst annual
performance since 2011, and the Australian dollar dropped to about 69 U.S.
cents on Thursday morning, the lowest level since January 2016.
