20.11.201705:13:00UTC+00RBA's Kearns Says Impact Of Foreigners' Investment On Housing Cycle Unclear

Reserve Bank of Australia's Head of Financial Stability Jonathan Kearns, said purchases and financing by foreigner investors and banks have been prominent in the current commercial property cycle.

The bank is well aware about the impact of such financing but the increased purchases of dwellings by foreign buyers, particularly for investment purposes, are a more recent phenomenon and so their impact on the housing cycle is less clear, Kearns said in Sydney, on Monday.

Kearns observed that commercial property lending can result in substantial losses for banks and the large stock of residential property debt means that it too is important for financial stability and household resilience.

The banker said the RBA will continue to closely monitor risks from property markets and lending.