Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Latest


Must Read


PM Tech Growth Sales Marketing Industry

Our Events


REB Awards

The REB Awards is back for another year, and celebrating a decade long journey of recognising the most exceptional...

LEARN MORE
VIEW ALL
Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.

Housing prices racing into dangerous waters

By Staff Reporter
30 October 2013 | 1 minute read

Staff Reporter 

The Reserve Bank of Australia is warning that property prices could begin to shoot upwards into unaffordable territory.

Speaking at the fifth annual Citi Annual Australian and New Zealand Investment Conference yesterday, RBA governor Glenn Stevens said the Reserve would be keeping a close eye on credit growth.

“While overall credit growth remains low at present, borrowing is increasing quite quickly in some pockets,” Governor Stevens said.

“Investor participation in housing in Sydney, in particular, is becoming noticeably stronger. Over the past year, the rate of finance approvals for this purpose has increased by 40 per cent.

“We have certainly experienced higher rates of growth of finance than that in the past, and it may be that we are seeing some catch-up from a delayed initial response to fundamentals favouring more investment in housing.”

Mr Stevens went on to warn lenders and borrowers alike that if this activity were to continue, that they should take due care.

“It is very important that strong lending standards remain in place, and that decisions be based on sensible assumptions about future returns.

“That's what we need if we are to experience a long and sustainable expansion in housing investment that houses our growing population at acceptable cost, and pays reasonable returns on the capital deployed.

“That's the sort of outcome we want, as part of the more balanced growth path for the economy we are seeking over the years ahead.”

Housing prices racing into dangerous waters
default
lawyersweekly logo

Tags:

Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.