{"id":27166,"date":"2020-08-31T09:20:09","date_gmt":"2020-08-30T21:20:09","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=27166"},"modified":"2020-08-31T09:20:09","modified_gmt":"2020-08-30T21:20:09","slug":"property-prices-yet-to-see-full-scale-of-covid-19-pandemics-impact-economists","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/property-prices-yet-to-see-full-scale-of-covid-19-pandemics-impact-economists\/","title":{"rendered":"Property prices yet to see full scale of COVID-19 pandemic’s impact: economists"},"content":{"rendered":"

PHOTO: While some banks have revised their outlooks, those of other banks have remained unchanged.\u00a0Photo:\u00a0Natasha Rae<\/span><\/strong><\/p>\n

Property markets around Australia are yet to see the full scale of the coronavirus crisis\u2019 impact on prices, according to economists, as stimulus measures soften the blow.<\/p>\n

In the early days of the COVID-19 pandemic\u2019s arrival, initial forecasts for property price drops ranged from 10 per cent to 15 per cent.<\/p>\n

Five months on and\u00a0most believe prices are running their course as first forecast but\u00a0some banks have revised their predictions up for smaller cities and down for major centres, notably pandemic-hit Melbourne.<\/p>\n

House prices fell just 2 per cent nationally in the June quarter, with a 2 per cent drop in Sydney and 3.5 per cent in Melbourne, the\u00a0Domain House Price Report<\/em>\u00a0found.<\/p>\n

The drops have so far been cushioned by federal government stimulus payments and mortgage holidays on offer from lenders.<\/p>\n

ANZ Bank has maintained its forecast for national house prices to fall by 10 per cent from peak to trough but now expects smaller falls in property price dropsand Canberra.<\/p>\n

While all those cities are set to fall between 6 and 9 per cent, the bank revised its forecast to a 15 per cent drop in Melbourne house prices, a dip greater than its previous prediction of a 13 per cent fall.<\/p>\n

It still predicts a 13 per cent fall in Sydney,\u00a0bottoming out in the second half of 2021.<\/p>\n

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