RBA optimistic on a rebound after lockdown

Mij Michael August 16, 2021

Covid-19 across the country is causing concern. Almost 16 million Australians were in lockdown recently, which suggested possible economic consequences. However, house prices around the country have continued to increase.

CoreLogic’s latest Pain and Gain Report, which provides a view of how resold properties are performing across Australia, says that in Sydney:

• 89% of properties resold for a profit and 11 per cent resold for a loss over the June quarter. 
• The total value of resales at a profit was $4.404 billion (24.6 per cent of combined profits nationally) and the total value of resales at a loss was $178.7 million (27.0 per cent of combined losses nationally). 
• The most profitable area in Sydney for resales was The Hawkesbury, where 94.5 per cent of properties sold for more than their original purchase price. This was followed by 94.1 per cent in The Hills Shire and 93.9 per cent in Randwick. 

The RBA thinks there will be a sharp rebound after the end of the lockdown. It also suggests that Australia’s economy is likely to move into reverse in the September quarter, with an increase in unemployment.

This disruption to Australia’s economic activity and labour markets is expected to be only temporary, says the RBA. They also suggest that the experience to date has been that economic conditions bounce back quickly once the outbreaks are contained and restrictions are lifted.