Government ready to take action on housing
The Federal Government is prepared to take more drastic action should its measures to cool the housing market fail.
The government releases its budget next week and it has touted measures to address housing affordability. Treasurer Scott Morrison has told Fairfax that additional steps could be taken should its budgetary measures fail to take the heat out of the housing market.
"We have taken steps, pretty significant but calibrated steps, to address the heat at the investor level through the regulations by APRA," Morrison told Fairfax. "They are pulling loans back, increasing the required level of savings to actually access loans, whether for investors or otherwise."
Morrison also said that the government could further clamp down on investors if necessary.
“We will always watch this closely and take the calibrated measures that are necessary. We have just taken a significant step. We are about to announce additional measures in next week’s budget that will particularly address issues around supply and we will see how those impact,” he said.
Morrison promised "pragmatism" and "practicality" in the government's measures to address housing affordability.
"There has been criticism of us looking to address issues in the housing sector. I make no apology for it. All of the political navel-gazing that has gone around the tactics of these things, frankly, if you can't afford your rent, you don't care."
Morrison’s comments come after CoreLogic figures showed that property price growth slowed in April, with prices in Sydney and Melbourne largely flatlining.