BIS central bankers’ speeches  3  From the point of view of financial stability, however, it is not just the change in the price of residential property which matters. The interplay with lending is crucial.
In view of households’ sound levels of debt sustainability and a moderate rate of growth in property lending, currently 2.2%, rising property prices do not at present harbour any excessive risks to financial stability. However, the possibility that property buyers, particularly in major cities, could experience wealth losses due to potential price corrections cannot be ruled out.