The data suggests that the macroprudential measures implemented previously are taking noticeable effect.
Based on the data, the Property Council of Australia stated that the fall in housing finance is being “picked up” by owner occupiers.
“We want to see the right balance in Australia’s housing market with a strong investment pipeline servicing the rental market, good opportunities for owner occupiers and new supply calibrated to keep pressure off home prices, ” said Nick Proud, executive director residential for the Property Council.
Proud noted that lending to owner occupiers increased by 3% in September, which was an encouraging sign.
He also urged those in the industry to carefully monitor the effects of the measures to ensure that they do not go too far.
“[We] need to closely watch the drop in lending to investors to ensure that the macroprudential measures don’t go too far and reduce the levels of rental stock entering the market, which would push up rents,” he said.
“Focusing on better understanding demand and supply should be a real priority for government as getting this right will boost housing construction which is not only good for affordability, but keeps the economy strong and creates jobs.”
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