First-home buyers are rushing into the property market, heartened by the fact that Covid-19 has not adversely affected the property industry and spurred on by low interest rates and government assistance, says Bank of Queensland chief executive George Frazis. The BoQ reports its mortgage application volumes are back to pre-Covid levels and Frazis says confidence has started to return to the industry.

“People are feeling more comfortable about how well the health crisis is being managed,” he says. “They’re also feeling more comfortable about the stimulus. The government has done a really good job on both of those.”

Though house prices have dropped in Victoria and NSW, they have now stabilised and are even trending higher in Queensland and other states and territories. “It’s the low interest rates that are encouraging people to get into housing,” Frazis says. “It’s just made it very affordable.”

High levels of government assistance are another key factor, plus the relatively low levels of competition from investors.