ANZ CEO Shayne Elliott recently visited Townsville, Queensland, to engage with the local community and discuss economic trends. During an interview with Adam Stephen on ABC North QLD, Elliott shared insights into the regional economy and housing market.
Elliott noted that the economy in Townsville is "in rude health," attributing its strength to a resource boom. However, he acknowledged challenges such as labor shortages and inflation concerns affecting businesses nationwide.
Discussing the unexpected rise in property prices over the past two years, Elliott explained that significant government financial support during the pandemic fueled demand for housing. "The government...threw hundreds of billions of dollars into the economy," he said, leading to a housing boom as people invested in larger homes and renovations.
Elliott expressed concern about rising rental costs impacting those without property ownership. He emphasized the importance of maintaining balance between homeowners and renters to prevent disparities from widening further.
Looking ahead, Elliott predicted a slower increase in property prices compared to recent years but cautioned that interest rate changes could influence this trend. "Rates are going to go up," he stated, though he reassured listeners that a rapid reversal in property prices was unlikely unless interest rates rose significantly and unexpectedly.
On branch closures in regional areas, Elliott acknowledged ANZ's responsibility to provide accessible banking services while balancing commercial viability. He highlighted the shift towards online banking as customer visits to branches have decreased substantially.
Elliott concluded by expressing enthusiasm for future engagements across Australia after two years of limited travel due to COVID-19 restrictions. His visit to Townsville marks the beginning of a broader effort to connect with communities nationwide.