At first glance, you would think this would cause a drop in property prices.
The more I think through it however the more I believe this will only really impact a very small % of the market, which are (new-ish?) investors requiring high LVR loans (i.e. little equity), and moreso those buying multiple properties.
For more experienced, lower LVR investors with equity who are after 80% loans the main impact to them will be they'll lose their 0.2% 'extra' discounts.
It'll probably be a good thing in that it's going to stop people to many super high LVR'ers in Sydney and Melb (which is most likely it's intention).
Hopefully they'll be quick enough to adjust as required if works 'too well'.