The number of loans granted to build or buy houses and apartments in Australia climbed +1.1% to 65,151 from May, when they gained +2.2%, according to the Australian Statistics Bureau.

Government grants to first-time buyers of as much as A$21,000 ($17,600) have triggered the longest run of gains in home loans since the figures were first published in 1975 and driven up property prices. Recently, Glenn Stevens, central bank Governor, left the benchmark interest rate at 3% for a fourth month and signaled his next move may be an increase.

First-home buyers accounted for 27.1% of dwellings that were financed in June, compared with 28.5% in May and 17.6% a year earlier, the statistics bureau said.

Demand for home loans has also been stoked by a record 4.25% of cuts to the benchmark interest rate between September and April.

Stevens said in June that he is concerned a surge in borrowing may leave the property market vulnerable to a bubble. According to Bloomberg, he said: “This ought to be the time when we can add to the dwelling stock without a major run-up in prices. If all we end up with is higher prices and not many more dwellings -- then it will be very disappointing, indeed quite disturbing.”