ANZ chief welcomes property price drops

The decline in property prices has been welcomed by the chief of ANZ Mike Smith.

Figures published last week by the Australian Bureau of Statistics revealed that the cost of property dropped by 1.7 per cent in the nation's capital cities during the first quarter of 2011, reports the Herald Sun.

"I think that some of the reduction in prices is probably not a bad thing. Certainly the affordability issue is something that has been of concern," the expert stated.

Mr Smith asserted that the number of house loans approved by lenders is unlikely to reach the levels seen before the onset of the financial crisis.

Phillip Chronican, Australian operations chief, added that the poor mortgage growth recorded by the ANZ was down to factors such as the price war between financial institutions.

This comes after JP Morgan banking specialist Scott Manning told ABC News that Aussies are starting to turn to smaller lenders for home loans rather than applying at one of the Big Four.

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