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.

‘Knee-jerk reactions’ threaten first home buyers: REIA

By Staff Reporter
11 December 2014 | 1 minute read
Bridge

The peak real estate industry body has slammed moves by Australia’s two key finance regulators to scrutinise mortgage lending.

The Australian Prudential Regulation Authority (APRA) has announced it will closely monitor "higher-risk mortgage lending", such as high-LVR loans, interest-only loans to owner-occupiers and loans with very long terms.

Meanwhile, the Australian Securities and Investments Commission (ASIC) has said it will investigate interest-only loans due to concerns about “higher-risk lending”, following strong house price growth in Sydney and Melbourne.

Advertisement
Advertisement

The Real Estate Institute of Australia (REIA) said the regulators’ actions are a threat to first home buyers, whose market share dropped to 12 per cent in the September quarter.

REIA CEO Amanda Lynch said tighter controls on housing loans are “totally unnecessary” and a “blunt instrument” that strikes the entire market rather than one or two hotspots.

“The trend for this latest quarter… is a cooling-off of the market nationally – even Sydney is coming off a high this quarter,” Ms Lynch said.

“You only have to look at the minutes of the Reserve Bank board meetings to know that concerns about a rise in property prices relate primarily to Sydney and, to a lesser extent, Melbourne.”

Ms Lynch said the regulators’ moves are the first step towards ‘macroprudential tools’ or new lending rules, which the REIA opposes.

“We know from the New Zealand experience that moves such as these disproportionally affect first home buyers, and APRA’s decision comes at a time when first home buyer levels in Australia have hit a record low,” she said.

“It was only last month that the Reserve Bank of New Zealand announced that it would be winding back its macroprudential measures after it became clear that it was shutting first home buyers out of the market.

“We need to learn from these overseas experiences and not jump to knee-jerk reactions.”

‘Knee-jerk reactions’ threaten first home buyers: REIA
Bridge
lawyersweekly logo

Tags:

ABOUT THE AUTHOR


Listen to other installment of the Real Estate Business Podcast
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings
Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
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.