The flow of credit with the economy and especially for housing loans has a major impact on property prices. Without the available credit, demand gets stifled and money will now flow.
In 2015 APRA implemented a constriction on investment lending. This served to slow down the buoyant property markets of Sydney and Melbourne and was the case of Brisbane not being able to start its cycle which generally follows Sydney and Melbourne.
With the credit restriction being met by the banks and the markets coming off the boil in the Southern States, APRA has now indicated it is prepared to lift that restriction to allow more flow of capital. This could be great news for property investors looking to expand their portfolios and make the most of the potential upswing in the QLD market.
Banks are now re-assessing their loan books and reducing rates for investors in order to grow that part of the business.