Over the last few weeks, we've had a lot of international investors asking very detailed and probing questions about why it is Australia thinks it doesn't have a housing bubble, said ABA's chief Steven Munchenberg.
"Bankers were grilled at length as to why investors should not be worried Australia has a housing bubble, he said. Australia's banks remain very conscious of the risks of international investors becoming nervous about investing in Australia.
Global investors like US fund GMO and bodies like the International Monetary Fund suggested the local housing market, where the median city home now costs $406,500, is over-priced. Some analysts argue the rising prices could be developing into a price bubble, similar to those experienced in the US, UK, Ireland and Spain in recent years - all of which have burst.
ABA's Mr Munchenberg said global lenders weren't about to cut off funding for Australia, but the concerns over the housing market, demonstrated how nervous international investors can get very quickly, if they feel there is something in Australia that can destabilise the banking system.
