ANZ has greater expectations of the property market than other banks, sticking to its property price growth prediction of 17% this year.
ANZ chief Shayne Elliott has reiterated the bank’s confidence in a 17% price boost in 2021, unlike the other three big banks, all of which foresee property price growth of around 10%.
Although he warns that regulators need to watch price movements and lending standards closely, Elliott says there is no cause for alarm. “We agree that price increases need to be watched and credit standards maintained to ensure the financial system remains stable,” he says.
Elliott says ANZ is assessing its customers based on their ability to pay higher interest rates in the future.
CBA boss Matt Comyn has expressed similar sentiments, noting the bank is “not overly concerned with what we are seeing at the moment in the context of financial stability”. The bank’s confidence is underpinned by the mix of buyers, with owner- occupiers currently making up 75% of applicants.