Canberra is leading Australia in demand for new mortgages. Photo: Supplied New mortgage applications in the ACT surged 14.9 per cent in the December quarter, according to quarterly figures released this morning.
The Veda consumer credit demand index shows Canberra leading the nation for mortgage applications.
There was also growth of 11.3 per cent in bids for personal finance, which Veda’s general manager of consumer risk Angus Luffman said was led by car loans.
Mr Luffman said ACT mortgage applications had been growing for the past six quarters — the only jurisdiction where this had occurred.
Canberra’s December quarter growth was more than double the national figure of 6.6 per cent.
Mortgage applications in the Northern Territory and Western Australia went backwards.
“Historically, movements in Veda mortgage applications have tended to lead movements in house prices by around six to nine months,” Mr Luffman said.
“Mortgage applications are a good indicator of home-buyer demand and an excellent indicator of housing turnover.”
The report doesn’t include the actual number of applications or how many were converted into loans.
“In the ACT for mortgages it’s been a rising trend for the last nine months and peaked in December,” Mr Luffman said.
“There was a nationwide strengthening in Australia except for WA and the Northern Territory.
“The ACT is the only state to have been in positive territory for the past six quarters.”
Mr Luffman said it appeared that investors were driving the ACT market demand.
“While we can’t separate investors from owner occupiers in the data, we’ve noted recent stats on that, showing relative growth in investor mortgages, and we also look at age demographics,” he said.
“Certainly, the proportion of older applicants has grown and it can be assumed that more of these are investors.”
The Veda report shows credit card applications were up 1.5 per cent in the ACT compared with 3 per cent nationally.
“At the same time, the total debt outstanding on other personal credit [excluding housing] has consistently fallen since the start of 2016, down by 1.2 per cent for the year to November,” Mr Luffman said.
“These divergent movements suggest that consumers are being circumspect about taking on additional credit.
“Instead, they are taking advantage of the increased product options on offer to meet their needs.”