The fundamentals of the Australian housing market are intact despite the economic upheaval caused by the COVID-19 lockdown, says Stockland’s head of communities Andrew Whitson.“The two biggest drivers of the residential property market have been low mortgage rates and credit growth. They still remain supportive,” he says.
Whitson says the Federal Government’s support to the housing and construction market was “smart policy” given it was “time-bound and targeted” and it would aid the industry and the economy. “There’s a real multiplier effect”, he says, adding that every house built creates three jobs and every dollar spent on residential construction adds three to the economy. The state of the housing market has been a key barometer of economic health.
When considering the fourth quarter of 2020, EY Oceana economist Jo Masters says, “The July 23 mini budget will outline a plan as to how we get through that fiscal cliff and how we support the economy and confidence through to the end of the year”.