From Louis Christopher at the AFR:
“It’s weak. This is not going to be enough to slow down the Sydney and Melbourne housing boom. The boom continues if this is all it is,” Mr Christopher said.
…”What we were thinking they may well have been doing was slowing down the overall investment lending credit growth limit to 5 per cent from 10 per cent.
“That would have been something that definitely slowed the market down but they’re not doing that.”
SQM Research is predicting Sydney prices will rise between 11 per cent and 16 per cent in 2017, while Melbourne gains between 10 per cent to 15 per cent.
“They (APRA) may well come back to market again. By the time we get to June, they’re going to find the market has accelerated further.
“There will more political pressure and community pressure for APRA and the banks to do something more. We may well still see an additional move in the second half of this year.”
It is not monetary or prudential policy, it’s bubble policy.
