(Bloomberg) -- Australia's housing-market extravaganza is over. That's the call the nation's biggest mortgage-lender is making when it comes to its own money.
In the past year, Commonwealth Bank of Australia has reduced its exposure to apartment developers by more than A$1 billion ($789 million), or 23 percent, according to data included in its first-half earnings report, released in Sydney Wednesday.
What's more, the bank included a chart highlighting its overall home-loan portfolio is growing notably slower than its competitors. It's also pulling back on loans to property investors, which rose just 0.5 percent compared to 7.5 percent growth for owner-occupier loans.
Sydney house prices, which surged 75 percent between February 2012 and July, have now dropped 3.1 percent from their peak, data released last week showed.
Housing loans have been the driver of Australian banks' recent run of bumper profits. So when the biggest lender starts reining back it's a good sign the party is over.
To contact the reporter on this story: Emily Cadman in Sydney at ecadman2@bloomberg.net.
To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Peter Vercoe, Edward Johnson
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