Overseas buyers will support Sydney house prices during APRA crackdown: NAB
The NAB's head of retail banking Gavin Slater forecasts slower growth in investor lending under the APRA crackdown would not significantly affect the Sydney property boom.
Gavin Slater was reported by Fairfax Media as saying the Australian Prudential Regulation Authority was not trying to influence price growth by imposing a 10% annual speed limit for investor credit growth.
"I don't think where we're heading, around looking to moderate growth to under 10 per cent, at an industry level, will have a significant impact on asset prices themselves, but that's not the intent of the action," Slater said.
The banking regulator's 10% a year cap investor credit growth will have little impact on house prices, which are being driven by strong demand and a lack of supply, says National Australia Bank.
Gavin Slater said prices would continue to be supported by strong buying, including from overseas.
Bloomberg reported Slater saying markets such as Sydney were struggling with undersupply amid "significant" foreign demand.
"All lenders are responding to the macro-prudential guidelines," Mr Slater said at a business lunch in the city.
"I don't believe it will have an impact on house prices."
