Chinese demand for Australian residential property has eased - RBA's Kearns
Reserve Bank of Australia's (RBA) head of financial stability, Jonathan Kearns, said today that Chinese demand for Australian residential property has eased because of tighter capital controls imposed by Beijing and tougher restrictions on mortgage lending by local banks.
Key quotes (source: Reuters)
Purchases of new properties by foreign buyers have eased over the past year, reportedly because of stricter enforcement of the Chinese capital controls and tighter access to finance for foreign buyers.
The run-up in commercial property prices raises the risk of a sharp correction, for example, if there is a change in sentiment or a pick-up in long-term interest rates," he said.
Purchases by foreign buyers do not reduce the supply of dwellings overall.
Australian banks have tightened lending conditions for commercial property in recent years.
Closely watching loans for an apartment building.