National Australia Bank chief executive Andrew Thorburn doesn't think homes in Sydney and Melbourne are overpriced.
Not yet.
Mr Thorburn told a parliamentary committee on Friday the big price increases of the past few years had elevated risks in the two cities' housing markets, but that he doesn't believe values are overblown.
"They are attractive cities and people have been moving to those cities for jobs, to get closer to the cities because we don't have long-term infrastructure: that's pushing the price up," Mr Thorburn said.
"There are increasing risks, but I still believe no (not overpriced)."
Dwelling values in Sydney rose by another 18.4 per cent in the 12 months to February 28, markets analytics firm CoreLogic said this week.
Melbourne home prices rose by 13.1 per cent in the same period, according to the same report.
Capital city prices rose by 11.7 per cent overall, but fell by about five per cent in both Darwin and Perth.
"There's no doubt that prices, particularly in Sydney and in Melbourne, continue to rise," Mr Thorburn said.
"When I go to other parts of Australia, that is not the case."
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