Any negative gearing changes would be unwelcome in the softening market: Aussie John Symond

Aussie John Symond has been back on 2GB with broadcaster Ross Greenwood to suggest that negative gearing should be left alone as the property market softens.

"At the moment things are tough enough, housing is propping up the economy," John said.

"I think you should leave it alone for the time being."

Symond says Labor's proposal would have a "terrible" impact on the existing housing markets.

"I think we're seeing a cooling taking place in the hot areas of Melbourne and Sydney, which has seen a levelling out," he said.

John suggests the market is starting to sort itself out, however he suggests that a potential oversupply of apartments in certain areas looks like it's started.

He also says that through Aussie Home Loans there is a softening, as people are starting to become more circumspect and more careful.

"Banks and lenders are being a lot more tough on investors and of course with all the talk of bubbles and all the rest of it it's scared off a lot of investors."

"So certainly the investor market which has really been driving credit growth has eased back significantly and that's now having an impact on softening prices," he said.

"Impending new housing starts coming on the market, off the plan is significant in a lot of areas that's going to impact the market for some time to come."