Property experts say the federal government’s economic rescue package of $200 billion and the mortgage repayment holiday offered by the banks will help prevent property price falls over the next six months. AMP Capital chief economist Shane Oliver says the government’s stimulus measures and support from the banks will help prevent forced home sales by home-owners who may have lost their incomes or jobs. The fact that most households are ahead on their mortgage repayments is another positive factor in preventing such sales. CoreLogic’s research director Tim Lawless says the property market is being insulated by these measures from a downturn over the next six months. It helps that most Australian housing markets were into an upswing phase of the cycle when the virus hit, he says, and that the disruption is only temporary. Robert Mellor, executive chairman of BIS Oxford Economics, says the current record low interest rates would also provide some cushion to home owners, at least in the near term.

“Interest rates are set to stay low for at least the next two years, so loan repayments will stay low,” he said.