Property market update with Dr Shane Oliver

Hosted by AMP Australia’s Chief Client Officer, Ant Dureau, this webinar delivered by AMP Chief Economist Shane Oliver provides perspectives on the Australian property market, both now and into the future. Particular focus is given to the impact of COVID-19 on the economy and subsequently the local Australian property market.

“If you want to understand what’s going on in the property market, you have to understand the dynamic of a big hit to economic activity.”

Property, like any investment, is exposed to both positive and negative market factors, some of which Shane expands on in this webinar:

Positives

• Record low mortgage rates
• Regulatory easing, including removal of the responsible lending obligations (RLOs) under the National Consumer Credit Protection Act 2009 (Cth)¹
• Government housing support measures

Negatives

• It's still expensive (affordability is poor, and household debt is high)
• Oversupply of units in some areas
• Hit to household incomes from a long tail of high unemployment
• Collapse in immigration = less demand (particularly in Sydney and Melbourne)
• Weak rental market in some cities

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_{¹ https://asic.gov.au/regulatory-resources/credit/responsible-lending/}