Housing Bubble Blown Out of Proportion

ANZ Australia’s CEO, Philip Chronican, is dismissive of concerns that there is a housing bubble in Australia. He believes that other factors exist to prevent an ‘overheating’ of the property market.

Chronican has predicted that escalating home prices will be stopped by poor job growth and consumer sentiment which is less than optimistic.

He argues that Australia will continue to experience negative impacts at the hands of supply constraints and that the current shortfall in dwellings will increase by 100,000 to 370,000 by 2015.

He believes that a housing bubble is not indicated by the strong growth recently observed in house prices. Instead, Mr Chronican states that concern over a housing bubble in this country is overstated and attributes part of the reason for strong prices recently being achieved to a period of rebound following a time of ‘soft’ property prices.

Chronican is confident that Australian housing will continue to be buoyed by a housing shortage as Australia is protected by no excess in supply but ongoing steady demand for housing and an increasing population.