The chief executive major property development company Stockland has claimed that APRA’s lending restrictions have taken the hot air out of the Sydney and Melbourne housing bubbles.
Mark Steinert, CEO of Stockland, told The Australian that the banking regulator’s requirement that investor home loan growth is restricted to 10% a year has stopped the threat of a housing bubble by suppressing supply.
“A lot of the supply that potentially could cause a problem is not going to be built this cycle because developers won’t get the funding,” he told The Australian.
According to Steinhart, in the last two months, Stockland — which will develop 32,700 dwellings and lots in the next two years — has seen partly built or stalled apartment projects become available to buy.
However, the property chief stressed that this doesn’t mean there will be a property downturn.
“Our outlook for Australia is benign. We operate in every market in the country and they are all showing some level of growth, so I don’t see what would create this recession in Australia without some external shock,” he told The Australian.
