Via Credit Suisse:
APRA has released bank commercial real estate (CRE) data for the December 2016 quarter, highlighting a wide-spread peaking in the pace of CRE lending balance growth across the banking industry. We see this as an important development given the strong momentum recently reported in bank CRE lending, the inherently risky nature of CRE lending for the banking industry historically, and recent investor concerns regarding residential apartment settlement risk (which to date has not crystallised); measured deceleration in CRE lending momentum should moderate risk build-up, thereby contributing to benign industry bad debt outcomes going forward.
In particular the December 2016 data highlighted: