Home loan approvals improved in September before the central bank's rate increase, but analysts are wary that this will not be sustained in the next 12 months.

The number of loans granted to build or buy houses and apartments in Australia went up by 1.3 percent to 48,333 from August, when they rose a revised 1.1 percent, the statistics bureau reported in Sydney today.

However, property research firms have warned that the additional rate increases to be imposed by local banks will discourage home applicants and other first-time buyers in the coming months.

The statistics report indicated that first-home buyers accounted for 15.9 percent of dwellings that were financed in September, up from 15.5 percent in August and lower than 26.1 percent a year earlier.

The statistics today also noted the increases in value of lending to owner-occupiers, which gained 0.6 percent. It also reported the value of loans to investors who plan to rent or resell homes gained 1.7 percent.

In September, the total value of loans rose 1 percent to A$20.4 billion ($20.5 billion).

The report supports the Reserve Bank of Australia's statements that the "appetite for new debt also remains more subdued" and there has been "a welcome cooling in the housing market" demand.

In a report by Bloomberg News, Paul Braddick, head of property research and financial system analysis at Australia & New Zealand Banking Group Ltd. in Melbourne said: "Additional official rate hikes next year suggest house prices are likely to move sideways over the coming 12 months and the incentive to rush into the market will be considerably reduced. Consequently, we expect growth in housing credit to fall to multi-decade lows in the year ahead."