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Saturday, 16 May 2020

Why the housing bears are wrong (paywall)

Bear trap

The housing boom is set to reignite forthwith, predicts Chris Joye at the AFR here (paywall):

That's certainly been our experience to date. 

There's so little stock on the market now that price declines have been cushioned.

With mortgages now available from just 2.09 per cent, search volumes are through the roof, reports Cameron Kusher at REA Group:

In a similar vein, Nerida Conisbee also predicts no declines in premium Sydney via REA Group here:

A caveat, though.

Australia will need to get back to business now that the hospital wards are effectively all but empty.

There are just 17 cases remain in ICU, which is less than 1 per cent of capacity.

Sadly there was one death last week, being an elderly passenger from aboard the ill-fated cruise ship. 

The Property Council has also warned that dwelling construction will remain mired at half-century lows until such time that international students can return (with an enforced period of quarantine) and permanent migrants are allowed to enter the country again (ditto).