Due to the restrictions of the new crown epidemic, only a few people are allowed to enter the properties for sale at the same time at a time.
Therefore, the long queue, especially the people buying the unit, can line up from the stairwell to the outside.
In some areas, especially the coastal area, real estate transactions have heated up.
In January, housing prices in remote areas rose by 1.6%, more than twice the increase in major provincial capitals.
Two weeks ago, Australian real estate prices fell to record levels, and there is no end in sight.
With interest rates locked at zero and the Reserve Bank guarantees that interest rates will remain unchanged for the next four years, many buyers are eager to try.
There is also the upcoming exemption loan bill, which will also add to the prosperity of the real estate market.
At the same time, it should be considered how to designate a contingency plan to burst the real estate bubble without harming the overall economy.
Reserve Bank of Australia Governor Philip Lowe recently said: "At present, the focus of attention is on housing prices rising again, while the stock market is performing strongly."
Of course, there is no flaw in his statement.
From a statistical point of view, it can be said that property prices have hardly changed in the past few years.
But the only problem with this logic is that it ignores something that is happening.
For example, four years ago, in order to curb the overheated real estate market, the Reserve Bank of Australia forced the banking regulator APRA to restrict banks from issuing loans that only charge interest. This type of loan was once the first choice for investors.
This successfully achieved the goal and reduced transaction data.
Obviously, the worry at the time was the real estate bubble.
Now we are back to square one. The difference is that we have just tried to emerge from the worst recession in nearly a century. The current unemployment rate is disturbing, a lot of production capacity is idle, and wages are growing faster than before. slow.
Once upon a time, the main role of the Reserve Bank was to "pour cold water to cool down."
It means taking preventive measures when the economy is overheating to keep development stable.
What has changed this thinking now?
The first is that the global economy is in a fragile state.
In addition, people are worried that the federal government will cancel financial support for the unemployed and industries that have become vulnerable due to the impact of the epidemic, such as those in the tourism industry.
But if house prices rise and the stock market continues to rise, people will feel rich and start spending.
Of course, the biggest problem brought about by the soaring real estate prices and stock markets is that they have created a larger gap between the rich and the poor.
Those who own the assets make a lot of money, while some people are further left behind.
There is an old saying among investors: the market stays irrational longer.
Therefore, although the recent booms are unreasonable, there are various signs that they will last longer.
The Reserve Bank has decided not to prevent overheating to thwart prosperity, but to let it move on.
This is a dangerous game, and it can be counterproductive.
Since the financial crisis, the global reserve banks have been constrained by their actions.
They are doing everything they can to ensure that the market continues to flourish, regardless of the long-term consequences.
One is that in the past year, we have not had an increase in immigration, which should have reduced the demand for housing.
The second is that a large number of newly built properties have not yet been listed.