'Sledgehammer' approach to risky lending could hurt economy: REIA
Malcolm Gunning, president of the REIA, has warned that the combined actions of APRA, ASIC and the banks could decrease demand for new properties to such an extent that housing supply dwindles and the construction sector weakens.
More properties went to auction last week than in any other week of the year, but the increase in supply did nothing to dampen demand - the nation-wide clearance rate rose to 77.6 per cent.
The ratio of household debt to disposable income was at a record high of 188.7 per cent at the end of 2016, according to recent statistics from the RBA.