Top Australia banker says housing market heat raising concerns
The country has some of the most costly housing in the world
[SYDNEY] Commonwealth Bank of Australia (CBA) chief executive officer Matt Comyn hinted that the current buoyancy in credit funding the nation’s housing market has reached a level that is concerning to policymakers.
CBA is the largest provider of Australian home loans. Mortgage lending surged beyond expectations in the third quarter to a record high, underscoring how looser monetary policy has reignited credit growth and property demand and given the Reserve Bank of Australia reason to pause.
“That’s probably pushing a higher level than policymakers and regulators might be ultimately comfortable with,” Comyn said in Canberra on Tuesday (Nov 18). “It will be interesting to see whether there is some moderation to the demand side of housing given there is, with good reason, much less confidence that interest rates will be reducing anytime soon.”
Home prices climbed at the fastest pace in more than two years in October, reigniting a debate on market access, especially for younger Australians and those on lower incomes. The country has some of the most costly housing in the world. In Sydney, the median dwelling value is at a historic high of A$1.3 million (S$1.1 million), around 11 times the median household income.
It remains very difficult for young Australians to get access to the housing market, Comyn said.
The CEOs of Australia’s biggest banks are giving testimony at a parliamentary hearing in Canberra over two days. After Comyn comes Westpac Banking boss Anthony Miller, then ANZ Group Holdings’ Nuno Matos nd National Australia Bank’s Andrew Irvine.
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Australia’s central bank kept borrowing costs unchanged this month amid lingering inflation pressures and a steady job market. Governor Michele Bullock signalled further easing is unlikely in the near term after three rate cuts this year.
“I do not think a reduction in the cash rate is likely in 2026,” Comyn said. BLOOMBERG
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