The Property Council of Australia has called out to the banking sector’s regulators and urged them to conduct a thorough examination of housing data prior to introducing new measures.
The Property Council is particularly concerned about measures that could restrict home lending and adversely affect first home buyers.
This call comes as the Australian Prudential Regulation Authority (APRA) reviews investment and mortgage lending in the wake of the recent cash rate cut. The Property Council said investment loans will be “scrutinised thorough for risk factors, having grown by more than $40m in the past two years”.
Meanwhile, executive director of the Residential Development Council Nick Proud said “activity in the domestic investment loan market has enabled construction and developments to progress quickly, but any macroprudential measures that APRA puts in place could reverse the trend in building starts”.
"There needs to be a greater understanding about what any future macroprudential decisions made by APRA will do to housing supply across all states and market segments," he said.
"These decisions should be made in parallel with consideration of other strategies that stimulate housing supply activity across first home owners, owner occupiers and seniors."
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now