Market reacts strangely to APRA crackdown
Property listings have increased across the nation in July and could be a possible result of the investor lending crackdown, according to a new report.
SQM Research managing director Louis Christopher believes the recent APRA crackdown on investor lending has contributed to strange market activity.
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Nationally the number of properties listed for sale increased 3.8 per cent from June to July, which is abnormal given that listings are generally subdued during this time of year according to SQM Research.
Sydney led the pack with an 18.5 per cent rise in listings month-on-month, from 18,968 in June to 22,478 in July.
Melbourne followed with a 7.8 per cent rise in properties listed for sale, from 34,498 in June to 37,179 in July.
The increase in property listings in Sydney and Melbourne are the largest increases for the month of July since SQM’s listings records began in 2008.
“I believe the results do represent an indication that the measures undertaken by APRA in slowing investor demand are now having an impact on the market,” Mr Christopher said.
“At this stage it is too early to call the magnitude of the impact. However, it is likely that the measures will slow the rate of dwelling price inflation recorded, rather than create a price correction.”
Canberra’s listings increased 4.8 per cent over the month, from 3,119 to 3,269.
Brisbane’s listings increased 4.6 per cent month-on-month, from 26,578 to 27,810.
Darwin also saw an increase of 3.3 per cent in property listings, from 2,063 to 2,132.
Perth’s property listings increased 3.0 per cent, from 24,030 to 24,757.
Adelaide’s listings increased 2.4 per cent, from 15,715 in June to 16,099 in July.
Hobart was the only capital city to see a decrease in property listings of 0.5 per cent from 3,789 in June to 3,769 in July.
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