The head of Australia's biggest regional lender says there are no signs of an imminent housing market bubble.
Bendigo and Adelaide Bank chief executive Mike Hirst believes a recent rise in house prices, especially in Sydney, is nothing to worry about. Recent figures from research firm RP Data show Sydney home prices are up 10 per cent since the start of the year.
But the rise in prices comes after several years of weak growth in the Sydney property market, Mr Hirst told ABC TV.
"I think there's been relatively subdued growth leading up to this so there's a bit of catch-up," he said. "Sydney seems to be the hottest spot and I think most people consider that it missed out on some of the rise in the earlier part of the decade."
Mr Hirst's comments echo recent statements from ANZ Australia chief executive Philip Chronican and Reserve Bank of Australia assistant governor Malcolm Edey.
The regional bank's chief also says Australian banks are doing a good job of maintaining prudent lending practices in an environment of low interest rates.
Mr Hirst said there was no need for more regulation of the industry than was already provided by the Australian Prudential Regulation Authority.
"There's very prudent lending still going on here," he said.
"The banks are still keeping their stress testing of serviceability at reasonable levels and APRA continued to remind us be to prudent with our lending and as long as that's the case, I don't see a need for any other intervention."