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
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
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