From CBA CEO Ian Narev via the AFR:
With the Reserve Bank of Australia previously branding the current investor-led surge in house prices “unbalanced” and governor Glenn Stevens describing Sydney’s market as “crazy”, Mr Narev said actions from the Australian Prudential Regulation Authority to cap the lending growth to housing investors would in the short term have a moderating effect on immediate investor demand, but the popularity of Sydney and Melbourne as places to live combined with limited supply suggested prices have further to run over the longer term.
“On the one hand, if you look year on year, the run-up in property prices in [parts of Sydney and Melbourne] feels like it’s going to have to come off. But on the other hand, when you again look back on these fundamental forces of supply of demand, some of them might be around for quite some period of time yet,” Mr Narev said in an interview.