Response to new APRA measures for residential mortgage lending
“APRA has a vital role in ensuring that the financial system is resilient enough to withstand external shocks. It is a role we fully support”, said Ken Morrison, Chief Executive of the Property Council of Australia.
“We hold the view that in the long-run, boom and busts benefit no-one, so it is best to be prudent without being unnecessarily risk-adverse.
“Having a balanced approach is in everyone’s interests.
“However, we do note that housing approvals have fallen by 17 percent from their peak over the past eight months, so we are not seeing a glut of supply. In fact, we are seeing consistent strong demand in our largest cities.
“In states coming off the economic peak of the mining boom, we are seeing an orderly readjustment in prices and rents.
“We have been supportive of previous measures undertaken by APRA in the past and understand their motivation. We will take a ‘watch and see’ approach to these changes and remain in dialogue with regulators on any unintended consequences.”
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