The Australian Property Council, in time for the release of the final report of the Royal Commission on Banking, warned of the dismantling of the real estate sector and the 39, economy in recovery of banks.
"In solving the problems raised by the Royal Commission, we must avoid creating new problems in other sectors of the economy, particularly with regard to the granting of effective credit and responsible to qualified borrowers, "said Ken Morrison, property board director.
How the government, regulators and financial institutions will act on the recommendations of the Royal Commission will have a direct impact on buyers, first-time buyers and buyers, real estate investors and investors. 4 million Australians working in the real estate sector. , according to the Property Council.
The residential property market is worth nearly $ 7 trillion, 3.5 times the size of the Australian stock market, and it has long been established that the credit crunch is affecting demand. buyers and the value of properties.
Prime Minister Scott Morrison was worried about the same thing, noting that the economy could face "serious consequences" if the malpractice investigation in the Australian financial sector caused a freeze on credit.
"I will ensure that the oil that lubricates our financial system, namely access to credit, continues to flow, otherwise the consequences would be very significant," he told the Sydney Morning Herald .
Latest Australian Housing Finance Bureau data reveal a 2.5% decline in the value of housing commitments up to November, including a 4.5% decline the value of commitments in investment goods.
In addition, the recent ANZ / Property Council confidence survey revealed that expectations regarding the availability of debt financing over the next 12 months reached their lowest level since 2011.
The Property Council stated that at this stage of the property cycle, Australians would seek policy responses that would bring certainty and enhance self-confidence for the purchase and sale of property. investment in the property.
Access to credit, for example, is important for people seeking to acquire new or existing properties.
"The real estate sector also supports the budgets of state and territory governments, accounting for more than half of their total revenues. A strong real estate sector provides Australians with great places to live and work, creates jobs, boosts economic growth and helps Australians save for their future, "said Ken Morrison.
The Royal Bank Inquiry Commission was established by the government in December 2017 to investigate cases of misconduct in the banking sector, pensions and financial services across the country and report on it.
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