©Reuters. FILE PHOTO: The Westpac Banking Corp logo is displayed on a wall during a media briefing on the 2012 full year results announcement in Sydney November 5, 2012. REUTERS/Tim Wimborne/File Photo
SYDNEY (Reuters) – Australia’s housing shortage could push up prices but is crowding out first-time homeowners and the migrants needed to fill skills shortages across the country, the chief executives of the three major Australian banks.
After years of ultra-low interest rates pushing house prices higher, Australia is facing a long-term decline in the number of young people buying homes, which could mean more people retiring in weaker financial positions, according to a 2023 government report.
At a banking conference in Sydney, the heads of Commonwealth Bank, National Australia Bank (OTC:) and Westpac, Australia’s top 3 lenders, blamed a housing supply shortage and urged local governments to speed up plan approvals.
“For the younger group, I think it’s a really significant issue,” CBA CEO Matt Comyn said at the AFR Banking Summit, when asked about a housing market with some of the worst affordability in the world in terms of ratio debt/income.
Westpac CEO Peter King said prices will rise when you have a supply-constrained market, but that current house prices “from a social perspective, are too expensive”.
He, however, added that he was “positive on the housing market” citing “the fundamentals of ‘we need more developed homes’.”
NAB chief executive Ross McEwan said at the event that the country needs migrants but “we need to clear the barriers, get traders in and start building”.