Regulators urged to action over house price growth

Adam Smith 3 November 2016

risk aheadRegulators may be forced to step in to cool a surging property market.

A new report from SQM Research has claimed house prices are in danger of continuing to balloon, and that Australia could see double-digit price growth next year, the Australian has reported. According to the Australian, SQM Research managing director Louis Christopher has urged the Reserve Bank and the Australian Prudential Regulation Authority (APRA) to take a more proactive role in cooling the housing market and keeping affordability from spiralling out of control.

“The RBA risks being behind the curve on what is presently happening in the housing market and what is about to unfold. The RBA will need APRA to rein in credit lending once again or lift interest rates, or do both, and they need to take action sooner rather than later,” Christopher said.

Christopher argued that failure to act could lead to out-of-control price growth in 2017.

“Tapping on APRA’s shoulders once again could be a little more complicated this time around as it will need to involve restricting owner-occupier credit growth, which is something the banks will be reluctant to mess with,” Christopher said.

Latest home loans headlines

Image: Shutterstock

More great ideas from finder.com.au

Get a life insurance quote
Get a life insurance quote

Find out what it costs to protect yourself and your family

More info...
Refinancing home loans
Refinancing home loans

Choose from offers with rates as low as 3.39% p.a.

More info...
Google Pixel
Google Pixel

Compare plans for Google's flagship Android phone

More info...
Christmas ideas
Christmas ideas

Visit our Christmas homepage for gift ideas, markets, travel & deals

More info...

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback