With the discovery of a new deadly corona virus at the start of 2020 there was a great deal of fear and speculation around the prospects of the Australian property market. Economists and bank industry experts were fuelling the idea of a collapse in property values as a result of the global shut down.
So, what happened? More to the point, why didn’t it happen?
The credit really needs to go to the federal government and their quick action in bolstering the economy.
Let’s take a look at the milestone moments that helped insulate our properties.
03-March: Cash rate reduced to 0.5%
11-March: Federal government $2.4B towards health response
12-March: First round federal financial assistance $17.6B
19-March: Cash rate reduced to 0.25%/RBA $90B term funding facility to support lending.
22-March: Second round federal financial assistance $66B
30 March: Third round federal financial assistance $130B including Job Keeper programme/Loan repayment holidays introduced.
22 May: $1.8B Federal government boost to roads and infrastructure.
03 June: Federal Home Builder Grant announced.
15-June: Federal government announces fast tracking of $72B in infrastructure.
08-July: Banks announce 6month extension of mortgage freezes allowance.
21-July: Extension of revised Jobkeeper and Jobseeker until March 2021 announced.
06-October: Federal budget brings stimulus total to $507B and approximately 25% of GDP including $7.5B towards infrastructure.
03-November: RBA Cash rate reduction to 0.1% and announced $100B QE bond buying programme. CBA announces freeze on housing foreclosures until September 2021.
All of this has seen a complete reversal in sentiment from dire predictions of up to 30% falls in national house values to now a 20-30% boom in SEQ over the next 2 years.