As Australia moves through its first recession in 28 years with payroll jobs decreased 3.0% and wages down 4.3% from March 2020 to October 2020, this surprisingly hasn’t affected house prices. According to Eliza Owen, Head of Residential Research Australia at RP Data, there are a number of contributing factors to show that the property market is on the rise:
A. Low Interest Rates
Record low interest rates to help stimulate the economy means buyers are more inclined to purchase during these times which contributes to a rising buyer demand
B. Mortgage Repayment Deferrals
With banks currently offering mortgage repayment deferrals, RP Data has noticed a decline of mass selling as the financial pressures of the mortgage have been temporarily relieved for those financially affected during 2020.
C. The downturn was more industry specific
With the large majority of job losses and wage decreases coming from the Hospitality, Travel, Arts and Entertainment space likely impacted the rental market more so than the sales market, accordingly to RP DATA.
Brisbane has been able to recover quicker than our Southern Cities due to the tighter restrictions that were in place, these have since been lifted allowing our Sunny State to start to prosper again. There are also a greater amount than usual of Interstate migration and expats coming home therefore increasing the demand for our Brisbane homes, which will contribute also to our rising market.