Housing recovery 'sustainable'
The share of new loans being issued to first home buyers is at a nine-year low as investors bid up house prices, but Mr Frazis said he believed "natural demand" would trigger a broader recovery in the property market next year.
There has been concern over the dominant role of investors in NSW, where St George controls about 11 per cent of the mortgage market.
In an interview with BusinessDay, Mr Frazis said the recovery in the housing market was sustainable and investors' dominance would inevitably fade.
"We're still yet to see a big increase in first home buyers coming into the market," he said. "My expectation, however, is that next year we might start seeing more activity in the first home buyers."
Westpac is betting on economy-wide credit growth accelerating to its fastest pace next year since the global financial crisis, and Mr Frazis says this would come partly from pent-up demand for homes.
"I think it's just natural demand," he said. "You've got population growth, you've got growth in immigration, particularly in NSW, and then if you look at the supply of housing, that's been constrained for a number of years now, so effectively your first home buyers will eventually come in."
First home buyers accounted for just 13.7 per cent of all new loans approved in August, the lowest share since 2004, latest figures from the Bureau of Statistics show.
At the other end of the spectrum, the Reserve Bank has expressed concern that investor lending accounts for 40 per cent of all home loan approvals in NSW, a share not seen since the heady days of 2004.
Despite this, Mr Frazis said recent activity in the property market was sustainable because it was not being driven by households borrowing as aggressively as in the past, and it had followed a soft patch in NSW, the country's biggest market.
"You've got to remember we've had 10 years of very subdued activity particularly in NSW, so there's a lot of catch-up occurring," he said.
Frequently Asked Questions about this Article…
Currently, the share of new loans issued to first home buyers is at a nine-year low. However, there is an expectation that first home buyers will re-enter the market next year, contributing to a broader recovery in the property market.
Currently, the share of new loans issued to first home buyers is at a nine-year low. However, George Frazis from St George Bank predicts that first home buyers will return to the market next year, supporting a broader recovery in mortgage demand.
Investors are currently dominating the housing market, particularly in NSW, where they account for 40% of all home loan approvals. This dominance is partly due to the constrained supply of housing and the subdued activity over the past decade.
Investor lending accounts for 40% of all home loan approvals in NSW, a level not seen since 2004. This dominance has raised concerns, but it is expected to fade as the market stabilizes and first home buyers re-enter.
Yes, according to George Frazis, the current recovery in the housing market is sustainable. It is not driven by aggressive borrowing as in the past, and there is a lot of catch-up occurring after a period of subdued activity.
Yes, according to George Frazis, the recovery is sustainable. It is not driven by aggressive borrowing as in the past, and follows a period of subdued activity, particularly in NSW.
The housing market recovery is expected to be driven by natural demand, including population growth, increased immigration, and a constrained supply of housing, particularly in NSW.
Factors such as population growth, increased immigration, and constrained housing supply are expected to drive first home buyers back into the market.
Westpac, through its subsidiary St George Bank, controls about 11% of the mortgage market in NSW. The bank is optimistic about economy-wide credit growth accelerating next year, partly due to pent-up demand for homes.
Westpac anticipates that economy-wide credit growth will accelerate to its fastest pace since the global financial crisis, partly due to pent-up demand for homes.
The outlook for first home buyers next year is positive, with expectations of increased activity as natural demand and market conditions improve.
First home buyers accounted for just 13.7% of all new loans approved in August, the lowest share since 2004.
The role of investors in the housing market has increased, with investor lending accounting for a significant portion of home loan approvals. However, this dominance is expected to fade as the market stabilizes.
St George Bank, owned by Westpac, controls about 11% of the mortgage market in NSW.
There are concerns that investor lending accounts for a large share of home loan approvals, particularly in NSW. This level of investor activity has not been seen since 2004, raising questions about market sustainability.
The NSW housing market is experiencing a catch-up due to 10 years of very subdued activity, leading to recent increased activity as the market recovers.
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