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 owneroccupiers
currently making up 75% of applicants.