The downside risks relating to Australia’s leveraged property market have been well documented, with the possibility of tighter lending rates on investment loans in 2017, and an oversupply of inner city apartments looming in Brisbane, Melbourne, and potentially Canberra. That said, we’ve known about the pipeline of apartments for a long time now, interest rates remain at stimulatory levels, and well-located, established capital city property will often continue to perform well. Year-on-year credit growth pertaining to investors ticked back up to 5.3pc in October from 4.6pc in August, so there’s a possibility that APRA may need to implement further macroprudential measures in 2017, although higher lending rates for investor loans may negate the need for intervention. For now, Sydney and Melbourne still appear to be carrying reasonable momentum into the new year, as do house prices in most capital cities ex-Perth and Darwin, but the outlook for higher density and inner city apartment stock is generally less upbeat. In this wire we identify areas of value, and the data investors should be watching.