Powered by MOMENTUM MEDIA
research
1 minute read

Investor crackdown dangerous for housing supply

Investor crackdown dangerous for housing supply

by Reporter | August 11, 2015 | 1 minute read

Reduced levels of investor loans could prevent development projects going ahead, which would in turn damage supply levels according to an industry figure.

Hobart
Hobart
by Reporter
August 11, 2015

New ABS data reveals investment loans decreased over June while owner-occupier loans increased resulting in the proportion of total housing lending finance going to investors dropping to 41.6 per cent.

The Property Council of Australia’s executive director Nick Proud said this indicates that the lending restraints on investors may be starting to have an impact and that the owner-occupier market is gaining strength.

“Although these numbers are strong it is likely that a reduced appetite for lending to investors will start to impact on the number of homes that will proceed through to development,” Mr Proud said.

“What brings developments to market is a good mix of investors and owner-occupiers who can ensure that pre-sale commitments are met and projects go from planning to construction.”

Advertisement
Advertisement

Investment loans for new dwelling construction dropped by 5.4 per cent while owner-occupier loans increased 5.5 per cent in seasonal terms from May 2015 to June 2015, meaning the ‘good mix’ Mr Proud is stressing may become out of balance.

“Keeping a strong pipeline of new housing supply for owner-occupiers and renters alike is essential to take pressure off prices,” Mr Proud said.

Read more: 

More illegal investors ordered to sell up 

Two cities set for further growth, says RBA 

7 steps to building a massive property portfolio: Part 6 

Fixed rate loans becoming more popular 

Signs of recovery in WA 

What to do with your tax refund 

 

Investor crackdown dangerous for housing supply
Hobart
nestegg logo
share the article

Subscribe to get the latest news and updates - join a community of over 80,000 property investors.

Check this box to receive podcast updates

From the web

Website Notifications

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