Australia’s housing market, employment conditions and economy are likely to rebound strongly following the COVID-19 outbreak, says chief investment officer of La Trobe Financial Chris Andrews.
Andrews highlights his confidence in the ability of the Australian economy to bounce back once the immediate threat of the virus has passed, referring to the immense resilience previously seen in the Australian housing market.
Andrews notes periods in the past when the housing market has initially responded negatively to broader economic conditions, including the global financial crisis in 2008 and the 2017–2019 “credit squeeze”, but recovered strongly soon after.
“In both cases, there was an initial drop … but in both cases, that was followed by a sharp rebound, as more normal market conditions re-emerged,” he says.
“So, that is a really good baseline for our thinking around house prices.”
He adds that house prices are less volatile than the share market, and that our financial system is strong.