Opportunity for strong property recovery post-Coronavirus

Olivia Gee

17 Apr 2020

People looking to buy property content

While property transactions have seen a considerable downturn during the Coronavirus lockdown, Australians are keeping a keen eye on the residential market, according to REA’s executive manager of economic research Cameron Kusher.

“In particular, they’re doing research and thinking about their next move once this is all over,” Kusher said in a live webinar this week. 

“When we do start to come out of this, the cost of borrowing is going to be very low, and it’s going to encourage an increasing number of people to go and upgrade their home, move to a new property or build their dream home. It could also encourage people who are renting to get into property as well.”

While low consumer confidence means big financial moves aren’t a high-priority right now, Kusher said this could still represent “good opportunity for a strong recovery” post-crisis.

Supporting this idea, there’s been a recent 14% rise in ‘for sale’ search activity on realestate.com compared to the same period last year. 

Additionally, the emergency RBA rate cut has led to rapidly declining mortgage interest rates, which also bodes well for borrowers.

RELATED ARTICLE: Government extends support to First Home Loan Deposit Scheme applicants amid coronavirus auction ban.

The REA doesn’t anticipate a considerable fall in house prices down the line but Kusher noted potential price shifts in the rental market, linking a surge in new realestate.com rentals to a drop-off in Airbnb listings.

“That product has essentially become unviable at the moment, so people are looking for someone to rent out those properties for the next six to 12 months,” he said. “That’s probably going to be deflationary for rental prices, so the cost of renting is likely to come down.”

If you’re a homeowner facing financial hardship, read about bank relief options, or investigate if you’re eligible for refinancing.

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Rates updated daily. Advertiser disclosure.

  • loans.com.au
    Mozo Expert Choice Badge" style="width:60px;">

    1.99% p.a.variable for 12 months and then 2.48% p.a.

    2.47% p.a.

    $1234

    Product details Close details
    Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    1.99% p.a.variable for 12 months and then 2.48% p.a.

    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.

    Smart Booster Home Loan

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • Optional - with 0.10% additional interest

    • $520

    • 1.99% p.a.variable for 12 months and then 2.48% p.a.

    • 2.47% p.a.

    • $520

    • 80.00%

    • $50,000

    • $1,000,000

    • Variable

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    • Weekly, Fortnightly, Monthly

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  • Macquarie

    p.a.

    2.43% p.a.

    $1234

    Product details Close details
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    p.a.

    2.43% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Basic Home Loan

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    • $0.00

    • $400.00

    • yes - free

    • yes - free

    • no

    • $0

    • p.a.

    • 2.43% p.a.

    • $0

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  • UBank

    p.a.

    2.22% p.a.

    $1234

    Product details Close details
    UHomeLoan

    Owner Occupier, Principal & Interest

    p.a.

    2.22% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    UHomeLoan

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    • $0.00

    • $0.00

    • yes - free up to $20,000 p.a.

    • no

    • no

    • $0

    • p.a.

    • 2.22% p.a.

    • $0

    • 80.00%

    • $100,000

    • $2,000,000

    • Fixed

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    • $395 Establishment fee waived for fixed rate loans that settle by 30 September 2022. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.

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  • Athena
    Mozo Expert Choice Badge" style="width:60px;">

    2.19% p.a.

    2.19% p.a.

    $1234

    Product details Close details
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    2.19% p.a.

    2.19% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.

    Celebrate Variable Home Loan

    Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • $0

    • 2.19% p.a.

    • 2.19% p.a.

    • $0

    • 60.00%

    • $100,000

    • $2,000,000

    • Variable

    • Principal & Interest

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    • Weekly, Fortnightly, Monthly

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^See information about the Mozo Experts Choice Home loans Awards