{"id":28856,"date":"2020-11-06T10:32:47","date_gmt":"2020-11-05T21:32:47","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=28856"},"modified":"2020-11-06T10:32:47","modified_gmt":"2020-11-05T21:32:47","slug":"australian-property-bubble-hasnt-yet-burst-but-can-house-prices-keep-rising-amid-the-pandemic","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/australian-property-bubble-hasnt-yet-burst-but-can-house-prices-keep-rising-amid-the-pandemic\/","title":{"rendered":"Australian property bubble hasn’t yet burst, but can house prices keep rising amid the pandemic?"},"content":{"rendered":"

PHOTO: National house prices have continued to rise during the COVID-led recession.(ABC News: Alistair Kroie)<\/cite><\/strong><\/p>\n

After years of dire predictions that Australia’s property bubble could burst<\/a>, national house prices continue to withstand the otherwise devastating impact of the coronavirus pandemic, and once again the doomsayers have been proven wrong.<\/p>\n

Data released this week from CoreLogic shows the national average rose 0.4 per cent in October, following five months of national declines during the COVID-19 pandemic.<\/p>\n

Every state across Australia (except for Melbourne which suffered the impact of a second COVID lockdown)\u00a0experienced gains.<\/p>\n

But how long will the good run last?<\/p>\n

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It’s a question I asked AMP Capital chief economist Shane Oliver, who in late March at the onset of the pandemic in Australia, had warned that house prices<\/a> could\u00a0plummet by 20 per cent in a worst-case scenario.<\/p>\n

In response to my question, Dr Oliver jokes that when people get their Australian citizenship, it should come with a written warranty saying, ‘Congratulations, you are now guaranteed to live in a country where house prices will continue to rise’.<\/p>\n

He says over the years regulators and government have always stepped in and introduced measures that stopped the bubble bursting.<\/p>\n

These range from interest rate cuts, tax incentives for property investors and other measures aimed at propping up construction.<\/p>\n