Greens senator Barbara Pocock thinks the Treasurer needs to make APRA go further in how it treats investors:

I’m pleased to see that APRA is listening to the Greens. This is an important first step in limiting runaway investor lending that outcompetes first-home buyers but it’s not enough. 

$40 billion has gone to investors in the last 3 months and APRA and Chalmers need to stop the tens of billions flowing to investors.

APRA must use all the tools in their toolbox to rein in investor lending that is exacerbating the housing affordability crisis.

Investor lending is growing at an unsustainable pace, outstripping loans to owner-occupiers. First-home buyers are being priced out by investors at weekend auctions, house prices are surging, and the banks are profiting handsomely.

This housing crisis is heading toward a point where it may be impossible to reverse without immediate, decisive action. We urgently need to cool the overheated credit market for property investors. The Treasurer has the authority to issue directions to APRA and he should do so immediately.

APRA has used its toolkit in the past to cool investor lending and it led to the greatest stabilisation of house prices in 30 years, they need to take that decisive action again. 

This market is rigged in favour of wealthy property investors, and you only need to look at the latest ABS data, which shows investor lending skyrocketing by 12.3% over the year compared to only a 0.9% increase for first-home buyer loan commitments for the same period. It’s out of control!

House prices are forecast to increase by 9 percent next year on top of more than 6% this year, which will only worsen unless more pre-emptive action by APRA is taken.”