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Australia's banking regulator says the country's housing market is in an environment of "heightened risk", but he won't say there's a housing bubble.
Australian Prudential Regulatory Authority chairman Wayne Byres told a Sydney conference that he wouldn't use "the B-word" to describe the housing market.
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"I don't use the B-word. I refuse to use the B-word. It implies a binary, that's too simplistic," Mr Byres said speaking at the Australian Securities and Investments Commission annual forum.
"We are in an environment of heightened risk. House prices are high and particularly in this one (Sydney) they're rapidly rising," Mr Byres said.
Australian Prudential Regulatory Authority chairman Wayne Byres doesn't use the B-word, but says "we are in an environment of heightened risk". Photo: Daniel Munoz
"If everyone is not careful the risks are going to rise," Mr Byres said.
Mr Byres said APRA was watching the housing market, but he stopped short of saying the authority would bring in new curbs on investment lending.
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APRA has already limited the growth of investor loans for each bank to 10 per cent a year and Treasurer Scott Morrison has flagged some restrictions on investor loans in the May federal budget.
His comments came after the chairman of the Australian Securities and Investments Commission chairman Greg Medcraft warned of a housing bubble earlier at the forum.
ASIC chairman Greg Medcraft is cracking down on unrealistic valuations in financial reports. Photo: Alex Ellinghausen
Mr Byres also said that it was understandable that some of the big banks raised rates for some home loans after curbs were placed on investment loans and loans for foreign investor, saying it was a "choice they can make".
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