According to figures released from the Australian Bureau of Statistics (ABS), growth in home loan approval in September rose by 4.4% on a seasonally-adjusted basis compared with the previous month, beating previous analyst projections of 4%.
The low interest rates continued to be a force of positive influence, helping the 5.2% increase in the value of loans for investment housing in the period in comparison to August.
The rise in home lending was apparent in all Australian regions except Western Australia and the Northern Territory, where the ABS registered seasonally-adjusted drops of 0.6% and 6.7%, respectively.
The strongest increase in the number of owner-occupied mortgages approved was recorded in Tasmania, at 5.9%. In Victoria, home loan approvals rose by 4.7%, while in Queensland the number was 3.4% higher compared with a month earlier.
The housing market is one of the economic segments continuing to show growth as the country shifts away from its once-booming mining industry. It is mainly driven by the historic-low interest rates that have been slashed eight times since late 2011 as a means to stimulate activity in sectors such as retail and housing, which have been solid economic strengths in the past, The Australian comments.
Home loan approvals have seen solid improvement since the start of the year. The sole month to see a drop in housing finance commitments was August, when they slipped by 4%.
Residential building approvals in the country also witnessed an increase, going up 1.8% in September from the previous month. Loans for purchasing new homes dropped 2.1%, while finance approvals for existing residential property advanced by a strong 5.2%.