PHOTO: Coronavirus lockdowns have had practically no impact on surging Australian property values.
Break out the lifeboats and prepare for a river of crocodile tears in the next few months as we gear up for a federal election.
It has become something of a ritual. Every three years, housing suddenly becomes a red-hot political issue.
We will, no doubt, hear promises from both sides — to help first home buyers via grants, handouts, and other subsidies.
The problem is, generally, that tends to make affordability worse. Throwing money at first home buyers only adds to prices and, instead, becomes a grant to those selling their property.
If we’ve learned anything from the past week, the Australian housing market is on a one-way trajectory into outer space and no one — neither the Reserve Bank through monetary policy, nor the government through tax reform — is in any mood to alter its course.
The June quarter saw the biggest three-monthly rise in national capital city housing values since the Australian Bureau of Statistics first began collating the data almost 20 years ago, with growth averaging 6.7 per cent.
With official interest rates likely to remain close to zero for the next three years, the sheer weight of money and easy lending are likely to continue, further fuelling the frenzied demand for real estate.
And once again, investors are re-entering the market, squeezing out new entrants.
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