Disincentives are deterring housing investors. ABS data for July shows the value of lending to investors dropped 1.3 per cent in the month.
The value of lending in July 2018 is now 15.7 per cent lower than in July 2017. Investors played a role in the record levels of new-home building in recent years.
Their retreat from the market will weigh on activity over the near- to medium-term.
Investor exit from housing can be traced back to APRA interventions at the end of 2014 and again in early 2017. Also, state and federal governments have deterred foreign investors with extra taxes and charges. It appears APRA’s interventions have out-lived their usefulness.
- DIWA HOPKINS, Economist, HIA.com.au