Gallery Group Logo

Property Market Experts Looking Forward to A Rebound in mid-2020

March 24, 2020

The global economy continues to struggle amidst the Covid-19 pandemic. There are still no solid figures determining the full impact of the outbreak on the Australian economy. However, property market experts are still hopeful for a rebound in the property market throughout the current year. According to CoreLogic Australia’s Head of Research Eliza Owen, Australia’s property market managed to perform “relatively well” in the past against negative economic impacts. “Major share market losses and recession are not necessarily predictors of declines in housing values,” Owen explained. She made it clear that the effects on the market may vary and that it is important to explore “how property has historically responded” to these issues.

‘Black Monday’

Property Market
1987 Black Monday crash

In 1987, the stock market severely and suddenly crashed resulting in a strong economic decline worldwide. In one day, the Australian share market lost nearly 23 per cent of its value that time. Housing values on a better note were not largely affected. By October 1988, the residential property market achieved double-digit growth. Olwen used this as an example in her report suggesting.

Record Low Interest Rates

Property Market

To cushion the economic blow of the coronavirus outbreak, the Reserve Bank of Australia cut the cash rate down to .25 per cent. The board slashed the rate two times this month in response to the outbreak. According to RBA Governor Philip Lowe, the decision is vital to “support the Australian economy through this challenging period.”

Property Market Rebound

There are no clear data to guarantee a rebound in mid-2020. However, the property market in the country has performed well since late 2019 with record-low interest rates, affordable housing, strong migration and infrastructure investments. It is way too early to determine the timeline when the rebound will commence and it can either be in the next coming months or by early 2021. It is no surprise the businesses in the country, especially small businesses are taking a big hit. However, people, especially investors are still hopeful that when the virus is contained, things will pick up for the better. Real estate expert Nigel Stapledon from the University of New South Wales business school said “People will recover. People will go back to restaurants. People will go to football games. Things will eventually bounce back.”

Latest news

Stay connected with the latest in Australian living

Addressing the SEQ Rental Crisis: The Investment Potential of Co-Living

South East Queensland is currently facing a significant rental crisis characterized by a shortage of available properties and escalating rental prices. To address this issue, innovative solutions such as allocating a portion of new developments for investment properties and embracing the co-living concept are gaining attention.

RBA holds cash rate at April meeting, May cut a “done deal”

No one was surprised at the 2:30 pm announcement that the bank wasn’t cutting rates. Markets had priced in less than a 9% chance that rates would go down. This was an easy call and not an overly exciting discussion among property commentators.

Interest rate finally cut as RBA starts easing cycle

It may be 12 months later than experts and economists initially expected, but the Reserve Bank of Australia (RBA) Board has finally seen enough to begin easing its tight fiscal policy, which has kept rates at a 13-year high for the past 18 months.
View all
Open page
Latest news

Stay connected with the latest in Australian living

Addressing the SEQ Rental Crisis: The Investment Potential of Co-Living

South East Queensland is currently facing a significant rental crisis characterized by a shortage of available properties and escalating rental prices. To address this issue, innovative solutions such as allocating a portion of new developments for investment properties and embracing the co-living concept are gaining attention.
Read More
Open page

RBA holds cash rate at April meeting, May cut a “done deal”

No one was surprised at the 2:30 pm announcement that the bank wasn’t cutting rates. Markets had priced in less than a 9% chance that rates would go down. This was an easy call and not an overly exciting discussion among property commentators.
Read More
Open page

Interest rate finally cut as RBA starts easing cycle

It may be 12 months later than experts and economists initially expected, but the Reserve Bank of Australia (RBA) Board has finally seen enough to begin easing its tight fiscal policy, which has kept rates at a 13-year high for the past 18 months.
Read More
Open page
View all
Open page