http://www.smh.com.au/business/markets-live/markets-live-rally-ba...

http://www.smh.com.au/business/mark...ly-back-on-20151015-gkaii6.html#ixzz3ogkVZRtw

The Reserve Bank has once again flagged its concerns about a build up in risks in the property market, but it says tighter lending standards and $18 billion of new equity capital raised by the nation's largest lenders this year has made the system safer.
The additional capital, which included $3.5 billion raised this week by Westpac, was "timely because banks are facing an environment of heightened risk in their portfolios," the central bank said in its semi-annual review of threats to the financial system.  
The RBA noted that the banks had raised much of the capital required by regulators through a range of measures such as equity issuance, dividend reinvestment plans and assets but also noted that "at this point the major banks have not cut their dividend payments".
The big banks still have more work to do to meet new liquidity rules that will require them to issue longer term debt to match the profile of long-term home loans, it said.
The RBA document singled out property development in certain cities that will lead to oversupply of apartments and aggressive investment in commercial property by foreigners, even as tenancy rates are weak as risks.  
There are a "few tentative signs that sentiment may be turning" in Sydney and Melbourne's housing markets, the RBA said, one of several signs "that the banking system was better placed to manage the risk environment" than it was a year ago.  
The RBA also highlighted its angst that lending standards were weaker than they had initially thought after the Australian Prudential Regulation Authority found that lenders were more aggressive in their lending standards than they presented, prompting the prudential regulator to take action.
APRA's speed limit on investor lending was also working, with a strong relative growth in owner occupied loans in NSW and Victoria as borrowers resubmit their applications in the face of higher investment property loan rates.