The situation over the past 18 months, where more than half of the total increase in housing loan approvals has gone into the investor market, is a very unusual one.
When we see that this is occurring against a background where vacancy rates are rising, rents are stagnant or falling, and a large increase in new supply is coming on stream, it suggests to us a mis-allocation of investment, and the likelihood of a shakeout in the market, at least in the major cities.