house prices

Bank CEO’s chilling warning about what surging house prices will do to Australia | WATCH

PHOTO: ANZ chief executive Shayne Elliott said rocketing property prices would have social consequences

A banking boss has issued a chilling warning about surging Australian house prices – and fears home borrowers will be paying higher interest rates sooner.

ANZ chief executive Shayne Elliott said rocketing property prices would also have social consequences.

‘It’s a bit unhealthy at these levels, ‘ he told Melbourne 3AW broadcaster Neil Mitchell on Thursday.

‘It can’t keep going at double digit rates for very long because then you start getting real social and political problems.’

Despite the Covid recession, property prices in regional areas and upmarket suburbs of Sydney and Melbourne have surged at a double-digit pace.

In regional New South Wales, property prices in the year to February climbed by 10.2 per cent to a median $515,000 but in regional Victoria, they soared by 11.3 per cent to $415,000, REA Group data from homes sold on realestate.com.au showed.

Upmarket suburbs had even more dramatic growth, with mid-point house prices at Woollahra in Sydney's east last year skyrocketing 35 per cent to $3.7million

Upmarket suburbs had even more dramatic growth, with mid-point house prices at Woollahra in Sydney’s east last year skyrocketing 35 per cent to $3.7million

 

Australia’s lowest home loan interest rates

Greater Bank: 1.69 per cent, one-year fixed

UBank: 1.75 per cent, three-year fixed

Homestar Finance: 1.88 per cent, two-year fixed

HSBC: 1.88 per cent, two-year fixed

St George and Bank of Melbourne: 1.89 per cent, four-year fixed

Westpac: 1.89 per cent, four-year fixed

NAB: 1.98 per cent, three-year and four-year fixed

Westpac: 1.99 per cent, one, two and three-year fixed

Commonwealth Bank: 1.99 per cent, four-year fixed

Aussie: 1.99 per cent, five-year fixed

Source: Canstar 

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