National Australia Bank Ltd posted a pick-up in quarterly profit from the previous two quarters and pointed to an improving economy, said it expects house prices in Australia’s capital cities to rise by about 10 per cent this year. Demand for houses in Australia is expected to benefit from record-low interest rates as the central bank has pledged to keep borrowing costs low for several years, and from easing Covid-19 lockdowns in the country. This has come despite the ongoing challenges presented through the pandemic. Few months home lending applications have been at their highest level in several years as buyers flock back into the market after a quiet period through the nationwide lockdowns.
Australian home loan approvals surged 8.6 per cent in December from a month earlier, official data showed this month, while housing prices jumped to a record high. Australia’s No 2 lender by market value said its three- and four-year fixed rates on home loan plans were now below 2 per cent, while fixed rates on a 5-year loan package were down by 55 basis points to 2.29 per cent.