National Australia Bank’s chief executive Cameron Clyne has weighed in on the debate surrounding the future of the property market, arguing a price collapse is “unlikely”.
Speaking at the Australia-Israeli Chamber of Commerce business lunch in Sydney yesterday, Mr Clyne said while property prices are high, there is nothing to suggest that there is a “precipitous collapse about to happen”.
“The first thing international investors will comment on is how high the Australian property prices are,” he said.
“While they are high, I believe there is a floor underneath our property prices, which will prevent them from collapsing.”
Mr Clyne said supply constraints, strong net migration and the high proportion of loans with variable interest rates would stop property prices from ever tumbling.
“I think we should be comfortable with where everything is sitting at the moment,” he said.