buying property

‘Licking their lips’: Who is still buying property in Australia’s recession?

PHOTO: Some professions are still managing to buy homes during the pandemic and recession.

The Australian property market has taken a battering amid the COVID-19 pandemic with prices falling or stagnant in most cities, but white-collar workers, doctors and busy tradespeople have still been snapping up homes, agents said.

Although the Australian economy fell into a recession in the June quarter and recorded one of the biggest falls in GDP yet, the property market has not dropped as much as it might have without the massive stimulus measures from government and banks.

Agents say buyers are still active, depending on their jobs and employment status, with some pressing the advantage of ultra-low interest rates and reduced competition to buy.

Indeed Australia APAC economist Callam Pickering said as the economic impact of the pandemic had been unevenly distributed, there would be some clear winners.

“While a recession is devastating for many, it can often be an opportunity for others to build wealth by buying underpriced assets,” he said. “Higher-income or wealth households, many unaffected by COVID-19, would be licking their lips as property prices fall.”

Agents agreed that some professions were worse hit than others.

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