Measures aimed at restraining investor demand do not turn investors into sellers (as interest rate rises can do) and can merely have the impact of forcing investors to save up longer for their purchase than would otherwise be the case. After all, LVR tightening does not boost returns on alternative investments like term deposits or corporate bonds. Some of the investor demand gets spread over time. This acts to support the market when occasional causes of weakness come along like higher interest rates or economic decline.