How is Australia kicking off 2020?
January 23, 2020
The beginning of the year has been difficult for the Australian spirit and the economy amid the bushfires wreaking havoc on our country.
Yet, the full economic impacts are yet to be seen. Estimates from early January suggest that the crisis has cost Australia “$2 billion and rising” according to this article by the Sydney Morning Herald. The impact on the insurance industry, agriculture, and tourism has been significant, and the bushfires have left many parts of rural Australia destitute.
So, to say the least, the beginning of the year has been less than ideal.
However, there is speculation that The Reserve Bank will cut interest rates in their next meeting from 0.75% to 0.5%. The devastating impact of the fires only increases this likelihood.
Low interest rates and more lax lending from banks has increased the activity in the property markets, with residential housing prices increasing by 4% over the December Quarter according to CoreLogic. Moreover, the Clean Energy Finance Corporation is offering up to $60 million in discounts for eco-homes to boost the demand of energy-efficient homes for builders and home buyers. It appears property market sentiment is beginning to rebound after the downturn in 2017.
In the local Sydney market, the megalith property developer Lendlease sold a 25% interest in the Victoria cross over station development town to the Australian Prime Property Fund in a $300 million deal. Read more here.
Despite the bushfires, there is movement in the property market and there is plenty of opportunity heading into 2020.
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