Dwelling starts look set to slump to new low: Pete Wargent

EXPERT OBSERVER

 

Less than a month ago, one report suggested Australia might have the 'world's worst management' of the virus, and yet now it has transpired that our results are among the very best in the world, alongside New Zealand. 

Whether that's by luck or by judgement - or most likely a bit of both - may only be known in the fullness of time.

 

As to how this is impacting real estate searches, there are three main factors to bear in mind.

 

Firstly, there are now record low mortgage rates for new borrowers, from just over 2 per cent, and these look set to persist for at least three years. 

 

Secondly, there's now some potential return for a return of the cobweb effect we saw before the election last year, which may kill new supply, at least in tightly held or blue chip areas. 

 

 

Dwelling starts look set to slump to around a 70-year low, and while plenty of aged listings remain on the market, quality new listings are now rather thin.

 

For example, Real Estate reported that there was just one new apartment listing in Coogee over the course of a week, which is exasperating for anyone wanting for take advantage of the slowdown.

 

And thirdly - a point I've alluded to previously - while Canada, the US, and many developed European and Asian countries have grappled with the spread of the virus, the two countries which are emerging with enhanced reputations as the most desirable to live appear to be New Zealand and Australia.