Via David Uren today:
Analysis by KPMG shows investors are the “marginal” buyers who dictate the prices. The firm estimates that every 10 per cent increase in lending to investors in Sydney translates to a 2.2 per cent rise in prices.
Investors had reached 45 per cent of new mortgages in late 2014, up from a more normal level of around a third. In Sydney, investor buying represented closer to 60 per cent of new loans at the peak.
