RBA fears house prices are heading for collapse

  • The Reserve Bank is considering tighter bank lending standards amid concern about how the financial system would handle a collapse in housing prices, beginning with Brisbane apartments.

The Bank’s assistant governor (financial system) Michele Bullock told a business event in Sydney that the Reserve Bank was particularly uneasy about the “looming oversupply of apartments in Brisbane in particular, and possibly in some parts of Melbourne”.


Between October and January, the annual growth in lending to property investors jumped from 9 per cent to 27 per cent. Photo: Graham Denholm

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