Banking Royal Commission could be contributing to diving auction clearance rates
It’s believed the Banking Royal Commission is contributing to Sydney’s lowest auction clearance rates in six years.
Just 52% of the city’s 830 auctions sold over the weekend, with similar numbers being experienced in Brisbane.
Head of Research at Core Logic Tim Lawless tells Ross Greenwood the royal commission has a role to play.
“I think the key driver of this softness, amongst other things, is absolutely credit.
“Even before the royal commission kicked off into its third round of hearings now… we were seeing credit conditions tightening due to APRA wading into the regulatory space and limiting how much lending the banks could do on interest-only lending and, of course, on invest lending as well.
“The royal commission side of things is really just compounding that tight credit environment.”
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