Investors have bought up almost all the residential property around inner city suburbs and more than 90% in parts of Sydney. The concentration backs suggestions that any macroprudential measured, mooted to stem investor-driven capital gains, could be effective if introduced based on location rather than according to buyer profile or through a blanket approach. Concentrated rental accommodation is common around international city centres with bulding populations and the trend has spread to Sydney and Melbourne, RP Data figures show.
Official housing financa data shows investor mortgages represent 47% of new mortgage commitments. Investment loan values rise almost 30% year-on-year to August 2014. Historically high investment levels has prompted the Reserve Bank and the prudential regulator to flag unspecified macroprudential measures. This could be done through higher risk weightings for investment loans or limits on the extent of investment lending by the banking sector.
Source: Australian Financial Review - Friday 24th October 2014