Brokers divided over royal commission

According to the survey, which was conducted prior to the government’s announcement last week, 38 per cent of respondents were in favour of a royal commission.

From those in favour of an investigation into the banking sector, 14 per cent said that it was “definitely needed” while 24 per cent said that it was needed “on balance”.

Conversely, of those against a high-level inquiry into banking, 17 per cent of brokers believed that a royal commission would be unnecessary and 24 per cent suggested that there were “other more important issues to address”.

Twenty per cent of brokers were undecided on the issue.

In the same survey, brokers were asked what factors they believe had led to a slowdown in housing and apartment sales in Sydney and Melbourne.

Thirty-five per cent of respondents stated that house prices had reached an unsustainable point and were “too high” for first home buyers and low-income earners.

Moreover, 34 per cent of brokers believed that supply exceeding demand was the cause of reductions in house prices, while 14 per cent stated that price reductions were an inevitable result of the market peaking.

According to 12 per cent of respondents, a cooldown in investment from foreign buyers contributed to changes in the market, and 5 per cent of brokers viewed that potential buyers were awaiting the market’s next move before resuming activity.

MyState Group executive of broker distribution Huw Bough claimed that the data indicates that brokers are optimistic about the property and mortgage market and view changes in market conditions as mere “adjustments”.

[Related: Royal commission will look at remuneration]