Australia's top banker just called Sydney's property market 'crazy'

Expect the debate surrounding Sydney’s red-hot property market to go up another cog.

Just a day after Australian treasurer Joe Hockey suggested Sydney’s property wasn’t unaffordable otherwise “no one would be buying it”, RBA governor Glenn Stevens has added his voice to the debate earlier this afternoon.

Speaking at a business lunch in Brisbane, Stevens noted that the steep rises in property prices in Sydney were “acutely concerning” and that the issue is a social problem.

“Yes, I am concerned about Sydney. I think some of what’s happening is crazy,” Stevens said in response to an audience question.

In a sign that Stevens is not alone in his concerns Mike Smith, CEO of Australia’s third largest bank ANZ, suggested Wednesday afternoon that while property prices in the city were not quite a bubble yet, they had the potential to become one.

It’s clear that one man’s affordable is another man’s crazy.

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