Aust housing sector shows modest strength

The Australian housing sector continued to show modest strength in October, driven by financing for established housing.

Australian housing finance commitments for owner occupied housing rose 1.1 per cent in October, seasonally adjusted, to 58,378, the Australian Bureau of Statistics said.

Total housing finance by value rose 2.5 per cent in October, seasonally adjusted, to A$18.332 billion ($19.38 billion).

Housing finance by value for owner occupation rose 1.8 per cent in October, adjusted, to A$12.686 billion.

UBS senior economist Adam Donaldson said the trend for housing construction remained positive despite a fall in housing construction in October.

"Investor lending rose a strong 4.0 per cent while owner-occupier loans were up 2.7 per cent, driven by loans for established with loans for new construction down 2.7 per cent," Mr Donaldson said.

"The trend for construction is still up, however.

"The housing finance data is encouraging, albeit led this month by loans for established housing."

- AAP