Forthcoming macroprudential measures from APRA appear to be all but inevitable after the ABS Lending Finance data recorded the greatest month of property...

Forthcoming macroprudential measures from APRA appear to be all but inevitable after the ABS Lending Finance data recorded the greatest month of property investment lending ever in September for NSW. There was superficially good news for the economy as total lending recorded by the ABS has increased by a solid volume, up by 21 percent y/y on a rolling annual basis. However, the allocation of credit remains heavily skewed towards investment real estate and interventionary policies must surely be eventually deployed in the mortgage market. The rolling annual value of investor lending in NSW has increased by an astonishing 87 percent over the past two years, while Queensland investor activity has breached levels not seen since Q4 2007. On the other hand investor activity in South Australia continues to decline. (VIEW LINK)