Intensified competition between the majors has done little to stimulate buyer interest, new research has found.

According to data from the Australian Bureau of Statistics, the number of loans granted to build or buy houses and apartments dropped for the first time in seven months, falling 4.5 per cent from December.

ANZ economist David Cannington said the drop in demand can be largely attributed to the spate of natural disasters earlier this year.

Demand for loans in Queensland plunged 16 per cent as the state was devastated by floods and cyclone Yasi.

“The initial impact of the recent floods weakened housing finance activity,” Mr Cannington, wrote in a report.

But while the Queensland floods cannot be underestimated, mortgage approvals also dropped 5 per cent in Victoria, 4 per cent in NSW and 2.3 per cent in Western Australia.

Source: www.theadviser.com.au

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