Ring Partners

Phil Chronican is ANZ’s Australian chief executive. This is an abridged version of a speech he made on the 2nd of June 2011 in Sydney.

WITHOUT question, the housing market is a core pillar of the Australian economy and our national psyche – we love property, and everything that comes with it.

The housing market has a $4.2 trillion capital value and has a unique influence over our lives, but is proving an increasing source of controversy.

As a market or industry, rarely do we stop to ask what does the ideal housing market look like. For me, it would be a market that delivers sustainable outcomes and a balance between access and affordability, financial security, returns for investors, business opportunities and employment for industry participants.

So what are we seeing today? House prices have risen significantly over the past 30 years, well in excess of inflation or income... [continued]

From the desk of RING PARTNERS.

The median price in the great metropolitan Adelaide, that is from Gawler to Willunga, has risen every year for more than 3 DECADES….
(except the 2 years of 1995/1996 with the demise of the State Bank, when it only dropped 1.7% and 1.3% in the market place much worse than now).

The last 3 years has seen a collective drop of 23% in the volume of sales.
THAT 23% becomes pent-up demand and when that 23% decide to buy with all the normal influx of buyers – we will experience strong demand in very buoyant conditions putting strong upward pressure on prices. These pressures are real…..

The median price in
1985 was $ 72,200 and in
1995 it was $111,500 and in
2005 it was $276,000 and as at 31/12/2010 it was... [continued]