The Property Council of Australia has welcomed the softening of residential mortgage lending guidelines and the Government’s income tax cuts, noting the initiatives provide a welcome shot of confidence for the property sector at a critical time for the Australian economy.
Responding to APRA’s decision last week to remove the 7 per cent interest rate buffer for residential mortgage lending, Property Council Chief Executive Ken Morrison labelled it positive news.
“This is a sensible decision that reflects the reality of the current interest rate environment and housing market conditions,” Mr Morrison said.
“This measure was put in place almost five years ago at the height of the residential price boom. As market conditions change, so should the regulatory guidance.
“Tighter credit for housing lending has impacted demand, which in turn has affected investment and jobs in the residential housing sector – one of the big drivers of the Australian economy.
“A competitive and well-functioning credit market, subject to prudent regulatory oversight, will help more Australians buy or invest in property, improving housing supply and affordability and support jobs and economic growth.”
Meanwhile, Mr Morrison also welcomed the successful passage of the Government’s personal income tax cuts package.
“The newly legislated personal income tax cuts will add an important stimulus to consumers and businesses at this important time in the economic cycle,” Mr Morrison said.
“The recent announcement by APRA, and passage of the big personal income tax cuts add to the positive news for the property industry, which is good for jobs, investment and housing supply for our growing nation.”