Lending up down under at the end of 2015

Total lending activity increased in Australia in November 2015, although it remains below the high point reached in August of last year.

The value of investor lending increased by 0.7 per cent during the month of November, but was 7.7 per cent lower than a year earlier. The value of owner occupier lending, net of refinancing was up by 1.7 per cent and is some 22.8 per cent higher than a year earlier.

HIA economist, Diwa Hopkins, said it was a sign of "healthy" lending activity, adding that the figures "highlight that owner occupiers remain active in the new housing market, with the value of lending to those purchasing or constructing a new dwelling up by 0.7 per cent during the month to be 8.8 per cent higher than a year previously".

"These signals from housing finance are consistent with other indicators pointing to very healthy levels of activity in the residential construction sector in early 2016," Hopkins added.