Supply is a bigger issue than demand in Australia, bank exec says
Housing remains one of Australia’s most pressing policy issues today, according to National Australia Bank (NAB) chief executive Andrew Irvine (pictured above), who highlighted the significant amount of work required to address the problem.
“There is a massive amount of work that needs to happen,” Irvine said during a panel discussion at the annual ABA Banking Conference in Melbourne. He stressed that while demand is an issue, the more critical problem lies on the supply side.
“We really need to think about new types of dwellings to house people,” he said. “There’s a plethora of things that need to be addressed. From planning permissions, to taxation, to new methods of housing and modularisation, to more innovation around footprints.”
Irvine also commented on the diverse economic conditions across Australia, noting that average figures do not capture the full picture.
“The averages are a composite of a very diverse country,” he said. “I was in WA three weeks ago, and the economy there is growing at around 6%. “You go to Queensland too, and you have an economy that’s growing with significant migration from both overseas and within Australia. They’re also building infrastructure for the Olympic Games. Then you’ve got southeast Australia, Victoria in particular, that’s doing it tougher.”
Despite these challenges, Irvine noted that Australians are showing resilience.
“The good news is people have jobs. We’ve still got really low levels of unemployment and as a result, the vast majority of households and customers are getting by,” he said. “They’re budgeting, they’re having to make decisions. They’re not enjoying it, but they’re getting by.”
He also mentioned that arrears in the banking sector remain low, though he acknowledged the presence of hardship.
“That doesn’t mean there isn’t hardship out there,” he said. “If you’re struggling, call us, because the sooner we know, the more we can work together to help you.”
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