ANZ Banking Group’s
(ASX:ANZ) chief Phil Chronican has watered down fears of an imminent housing bubble in Australia and claims the speculation is overstated.
According to media reports Mr Chronican says the recent rise in house prices could be seen as a rebound after a period of quite soft prices.
Speaking to an American Chamber of Commerce in Australia lunch, Mr Chronican reportedly said there is no reason to assume the current uptick in demand is going to lead to any house price bubbles.
While conceding Australian house prices are “undoubtedly high relative to other markets”, Mr Chronican believes soft jobs growth and cautious consumer sentiment will put a cap on gains.
Mr Chronican predicts house prices will rise about 5 per cent over the next year and a shortage of dwellings could lift from 270,000 to 370,000 by 2015.
ANZ Banking Group reported a net profit of $2.9 billion in the first half of its 2013 financial year.
