Latest NewsHousing Market Healthy: AnzThursday, 11 May 2017

ANZ has reassured global investors about the health of Australia's property market, with a senior executive telling a Hong Kong-based conference the fundamentals are sound.

Property prices and consumer debt levels are expected to come under fresh scrutiny this morning as the Reserve Bank releases its half-yearly snapshot on the state of the nation's financial system.

But speaking at a Credit Suisse investment conference, ANZ's Australian operations boss, Phil Chronican, insisted the fundamentals of the Australian economy were supportive of house prices, particularly as the resources boom was under way. Shortages in supply of housing stock were supporting pricing levels, he added.

Australian bank executives have repeatedly come under intense questioning over the health of the housing market during global investment roadshows. With housing prices in North America and parts of Europe suffering a correction in recent years, doubts have been raised about the sustainability of the Australian market.

The Economist magazine recently published a survey estimating that Australian houses were ''overvalued'' by 56 per cent - the highest in the world - on a historical ratio of rents to house prices.

Given that the bulk of local banks' lending books is tied up in housing, any changes in value would be a big concern to investors. The comments by Mr Chronican were made as part of a broader presentation about the bank.

Mr Chronican also sought to play down the level of household debt in the economy, arguing that much of the debt had been taken up by higher-income households with the capacity to service the debt.

He said there were few signs of mortgage stress in debt-servicing ratios.

Westpac boss Gail Kelly is scheduled to speak at the conference today.

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