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Property slump looms? Not so, say NAB's Andrew Thorburn and Westpac's Brian Hartzer

Discussion in 'Property Market Economics' started by MGF, 16th Oct, 2015.

  1. MGF

    MGF Well-Known Member

    Joined:
    13th Aug, 2015
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    403
    Location:
    QLD
    http://www.theage.com.au/business/p...rther-house-price-growth-20151014-gk9gf6.html

    Key quotes:

    National Australia Bank CEO Andrew Thorburn said while the weaker global economy and local regulatory caps on lending to property investors would see the pace of price rises slow, home prices in Sydney and Melbourne would rise at high single-digit rates due to strong demand and limited supply of housing close to city centres.

    "There continues to be good underlying demand for housing and in some markets, particularly NSW, a deficit of housing relative to that demand. So we think that should underpin things," he told Fairfax Media after the bank announced a $3.5 billion capital raising on Wednesday and an increase in interest rates on home loans by 0.20 percentage points.

    "We don't see evidence of people speculating in house prices, we see house prices going up in response to supply and demand."

    Both bank chiefs also pointed to Australia's dual economy, noting that conditions in property markets were much softer outside Sydney and Melbourne.
     
  2. willair

    willair Well-Known Member Premium Member

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    19th Jun, 2015
    Posts:
    1,717
    Location:
    Brisbane..
    It would have been more about the capital raising,then suspend their self -promotion ..