Today ANZ have published their March 2009 Property Outlook examining the prospects for both the residential and commercial property markets. It is an excellent read and interesting given that ANZ has been the most conservative of all the major banks in regard to new housing finance (with consequent declines in the relative market share).
It is widely known that this is a reflection of the views of their new English CEO, and not the rather contradictory opinions of ANZ’s own economists.
Here are some key excerpts with the associated charts:
“Despite rising unemployment we continue to believe that Australian house prices will remain well supported. If housing supply remains on its current trajectory, Australia will face a critical and potentially intractable shortage of housing that would force rents and house prices significantly higher.”
“Australian house prices…will not experience anything like the spectacular falls that have occurred in the US, UK and many other developed countries. Australian housing market conditions are a far cry from those overseas. Conservative lending practices have protected us from the ravages of the sub-prime mortgage crisis and delinquency rates and foreclosures have remained at historically low levels.”
