By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 18 2015
Key points
- In response to pressure from APRA, lenders are starting to tighten lending conditions to property investors.
- This is designed to slow property investor lending, particularly into the strong Sydney property market, while at the same time allowing the RBA flexibility to keep interest rates low in order to help the rest of the economy.
- Expect to see a slowing in property investor lending and this to slow property price gains, particularly in Sydney.