RBA's Kearns: bank closely watching loans for apartment building
Reserve Bank of Australia Jonathan Kearns, Head of Financial Stability speaking
At the Australia-China Property Developers, Investors & Financiers event in Sydney
- Closely watching loans for apartment building
- Says no widespread reports of settlement failure, increase in arrears or losses for banks.
- Says run up in commercial property prices raises the risk of a sharp correction
- Australian banks have tightened lending conditions for commercial property in recent years
- Says Asian banks have grown their commercial property lending sharply
- Purchases by foreign buyers equivalent to around 10-15 pct of new home construction
- Says around three-quarters of foreign buyers come from China
- Says purchases by foreign buyers do not reduce supply of dwellings overall
The quick headlines above are via Reuters
AUD not doing too much at all on the speech.
Despite all the hype about property price crashes (the hype has been ongoing for a decade at least ... all the better to sell newsletters, right?) the price decline seen so far in Australia's (arguably) most heated market of Sydney is (on average) around 1% (or less) from the heady levels and welcome to many. Not least the people charged with overseeing financial stability at the RBA!
Stay tuned for more RBA today ...
0350 GMT - Reserve Bank of Australia's Marion Kohler, Head of Domestic Markets, speaking at the Australian Securitisation Forum, in Sydney