Australia is once again set to become the lucky country. Often looked upon as a safe haven during times of international strife or recession, Australia is well located for trading with Asia, in particular China, a global trade dominator.
We also have an abundance of natural resources, stable healthcare, governance, and economic outlook, not necessarily all down to luck.
As countries muddle their way through the current global crisis, Australia has put forward a strong case for being one of the more desirable places on earth to live, with other countries watching on as the Australian economy bounces back.
The Australian community has bound together to flatten the COVID-19 growth curve. While some cases may still arise, compared to the rest of the world, Australia is now seen as a leader in stopping the spread of coronavirus.
This arguably makes it an appealing proposition for those across the world unhappy with their country´s dealing with the pandemic. This, in turn, will presumably show as increased demand for Australian property.
The Australian Government stimulus package program will undoubtedly boost our economy, and hopefully keep our residential property relatively stable, as has been the case thus far.
The chart below, published by CoreLogic in 2019, shows that we have $7.1 trillion invested in residential real estate. Australian superannuation funds have $3 trillion invested in residential real estate and a further $1 trillion in commercial real estate.
As a nation we are fixed on real estate, in particular residential real estate. We have 10.4 million dwellings in Australia. Almost a fifth of them are in outstanding mortgage debt and 51.5% of the household wealth is in real estate.
It is inevitable that current events are going to alter the Australian economy and real estate market, but the key question is to what extent?
Only time will tell, we can only hope that luck will be on our side once more.