The Australian housing market is in for more turbulence as the nation’s biggest banks is beginning to curb their mortgage lending. Commonwealth Bank of Australia (CBA) is pulling back on lending and significantly reducing its exposure to apartment developers.
- CBA’s overall home loan profile is growing substantially slower than opponents
- - CBA reduced exposure to apartment developers by A$1 billion, or 23%, in the past year
- Home prices are dropping after years of substantial growth in Australia’s hottest markets
Australia’s housing-market extravaganza is over. That’s the call the nation’s biggest mortgage-lender is making when it comes to its own money.
In the past year, Commonwealth Bank of Australia has reduced its exposure to apartment developers by more than A$1 billion ($789 million), according to data included in its first-half earnings report, released in Sydney Wednesday.
What’s more, the bank’s overall home-loan portfolio is growing notably slower than its competitor.
Sydney house prices, which surged 75 percent between February 2012 and July, have now dropped 3.1 percent from their peak, data released last week showed.
View the original article at Bloomberg