Director of Metropole Michael Yardney told Yahoo Finance that the events of the last year have proven that the Aussie property market will not falter.
“The Australian property market is too big to fail. What we learnt from COVID-19 last year is that the Government and the banks are not prepared to let the property market fail,” Yardney said.
The Australian property market is worth around $9 trillion – bigger than the GDP, ASX and superannuation industries combined.
Property demand soars
The most recent Corelogic research found that even without international migration due to closed borders, demand for housing has reached a 12 year high.
Corelogic executive research director, Tim Lawless said there were around 598,000 house and unit sales across Australia from January to August this year.
That is the second-largest number of annual sales since 2004 and a 42 per cent lift on the annual sales compared to the last 12 months.
“Such a significant surge in housing demand may seem surprising at a time when overseas migration has stalled, however the substantial rise in home sales can be explained by a lift in domestic demand from previously low levels,” Lawless said.
“Housing turnover trended lower from late 2015 as credit conditions tightened, housing affordability became more challenging and transaction costs such as stamp duty became increasingly expensive as prices rose.”
However, Lawless said that since credit policies have loosened and mortgage rates have reduced to record lows, more Aussies have been encouraged to participate in the housing market.
Australia’s growing population
And, beyond more Aussies taking part in the market, Yardney said we can absolutely count on migrants coming back when borders open and also taking part again.
“The Government just put out their intergenerational report which is essentially their business plan for the next 40 years,” Yardney said,
“And they have said they know they must continue to let people in because we need to keep our population growing.”
Yardney said, so long as the Aussie population is growing, so too will our property market.