Advanced Search

Share Coverage



Category: Business, Economics and Finance / House and Home / Lifestyle / Government and Politics / Housing Industry

MP disagrees with CBA boss's housing affordability comments

Wednesday, 8 Mar 2017 06:57:25 | Henry Belot

CBA Boss Ian Narev says many young people are not concerned about house pricing. (AAP: David Crosling)

The Federal Government appears to be at odds with the head of one of Australia's largest banks over housing affordability in Sydney and Melbourne.

Key points:

  • CBA boss Ian Narev tells parliamentary committee "he's not sure" young people think property is overpriced
  • Federal MP Michael Sukkar says Mr Narev's feedback is "inconsistent with feedback" from first home buyers
  • Mr Sukkar said wage growth has not kept up with the increase in property prices over past two decades

Commonwealth Bank chief executive Ian Narev told a parliamentary committee on Tuesday many young Australians did not believe property was overpriced.

Audio: Jaws drop as CBA boss says the young don't think property prices are too high (PM)

"I am not sure they are saying it is overpriced, I think they are saying that it is difficult to afford it and we share that view," he told the inquiry.

"That should be a matter of national concern and it certainly is to us."

But Federal MP Michael Sukkar has told the ABC he doesn't understand that statement given his conversations with prospective first home buyers.

Mr Sukkar, the assistant minister to the Treasurer, said wage growth had not kept up with the increase in property prices over the past two decades.

"I am not sure how Ian Narev has made that statement as it's not consistent with the feedback that I get," he told Radio National.

"I think first home buyers feel property is extraordinarily expensive, particularly in Sydney and Melbourne.

"The dozens and dozens, if not hundreds, of conversations I have with prospective first home buyers are pretty different to that statement he made."

Why is Gen Y worried?


A lack of full-time job prospects, ballooning house prices and an increasingly tense world has young Australians feeling bleak about their future.

Mr Narev said the Commonwealth Bank was comfortable with its lending practices in all parts of Australia.

"We understand the laws of supply and demand in the whole sector and [as for] the view on whether any given house is overpriced or not, I'm not going to pronounce on that," Mr Narev said.

Mr Sukkar said Treasurer Scott Morrison had already acknowledged the merit of a shared equity scheme being trialled in Victoria, which would assist those without substantial deposits.

"The Treasurer is on the record in highlighting his admiration for a policy such as that," Mr Sukkar said.

"It was something that was appealing, so in that sense we applauded the Victorian State Government for doing something, it is a very interesting idea."

Victoria's stamp duty cut won't work: Morrison

The Victorian Government has also moved to abolish stamp duty for first home owners purchasing a property valued below $600,000.

5 housing affordability ideas


The pros and cons of some of the top suggestions to make buying a house more doable, along with the likelihood of them ever actually happening.

While Mr Morrison praised the Victorian Government "for having a good crack", he said the stamp duty concession would not work unless more homes were built.

"But at the end of the day, if that just means people bid up more in the auction because they can borrow more because they don't have to pay stamp duty, well obviously, that will just take prices in one direction," the Treasurer said.

"So you can't do that without addressing the supply issues at the end of the day."

Housing affordability has been a thorny issue for the Federal Government, with the Opposition using it as part of its campaign to paint the Turnbull Government as out of touch.

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend