Associated with this acceleration in residential and commercial property prices, and perhaps to some extent driving it, has been a large rise in bank lending. Personal sector credit, which is dominated by residential mortgage lending, has risen strongly in recent years, although at a slower rate than total private-sector credit.
The share of non-housing personal sector credit in total lending has remained relatively stable in recent years and was lower at end-1999 than end-1994. Lending to real estate and construction activities rose from some 6% of total lending at end-1994 to over 8% at end-1999.