On Tuesday, the CEOs of Australia’s three biggest banks stated that the country’s housing scarcity may be pushing up prices. However, it is also preventing immigrants and first-time homeowners who are needed to address skill shortages around the nation.
In 2023, a government assessment revealed that Australia risks a long-term decline in the proportion of younger people purchasing homes. Consequently, this trend might result in more people retiring in weaker financial conditions after years of record-low borrowing rates drove up property prices.
During a banking conference in Sydney, the chiefs of Australia’s top three lenders, Westpac, National Australia Bank, and Commonwealth Bank, cited a lack of home supply. They encouraged local governments to expedite planning permits, emphasizing the need for swift action.
At the AFR Banking Summit, CBA CEO Matt Comyn responded to a question concerning a property market with some of the lowest affordability in the world in terms of debt to income. He stated, ‘For the younger cohort, I think it’s really a significant problem.’
Westpac CEO Peter King stated that prices will rise in a supply-constrained market. However, he emphasized that the current home prices are “too expensive” from a societal perspective.
But he went on to say that he was “positive on the housing market,” noting “the fundamentals of ‘we need more houses developed.’”
At the occasion, NAB CEO Ross McEwan stated that while the nation needed immigrants, “we’ve got to get the tradies (tradespeople) in and get building.”
Click here for more news on Banking.