The number of new home loans approved in Australia rose 2.2% to 83,206 in the December quarter from the previous three months as demand remained firm despite higher property prices, official data showed on Monday,

The total value of new home loans climbed 4.2% to AU$54.8 billion, with the average loan size increasing by AU$24,777 to AU$665,978.

For the full year, the value of new home loans, excluding refinancing, reached AU$205.7 billion, up 13.6% from AU$181.0 billion in 2023.

Queensland saw the largest rise in value at 19.6%, followed by Victoria at 12.3% and New South Wales at 10.6%.

Home loan refinancing between lenders surged 12% in the December quarter to 61,749, following a 4.9% rise in the prior quarter.

The data comes ahead of the Reserve Bank of Australia's policy decision on Feb. 18, with markets largely pricing in a 25-basis-point rate cut.

ING Research said the decision remains uncertain, citing easing wage pressures and weaker-than-expected household consumption growth as factors that could give the central bank room to lower rates.