As Australia emerges from Covid-19 restrictions, there are some reasons to be optimistic about Australian property, says Eliza Owen, Head of Research Australia, CoreLogic. Prior to Covid-19, the economic outlook for the Australian economy was modestly positive and to date, housing values have only fallen slightly in some locations. The low level of listings signals a tough period for those developing and selling residential real estate, but it also signals a lack of distressed sales flooding the market.
According to the Australian Prudential Regulation Authority, banks were already in a strong capital position before the onset of Covid-19 and housing finance conditions were becoming more relaxed for potential buyers. Tougher lending measures are now being deferred and low-cost debt will encourage spending. There are no signs yet of distress in the housing market. This is supported by a very low level of for sale listings, Owen says.