"The fact is that banks must make decisions about non-performing loans. You cannot expect them to just sit on outstanding loans for properties that have been vacant for prolonged periods and this is the case particularly with high rise in Melbourne and Sydney, but also thousands of vacant properties are on the books just ticking over."
So vacancy rates are almost the same as in 2005, but in 2005 we were not coming out of a recession. Overseas students and immigration will come back and for the forcible future monetary policy will stay accumulative.
“The ‘V-shaped’ nature of the recovery is everywhere to see – economic growth, the job market, retail spending and the housing market,” said Craig James, Sydney-based chief economist at CommSec.James expects the economy to rebound 4.2% in 2021"
Marcel Thieliant, economist at Capital Economics, expects GDP growth of 4.5% in 2021, “which implies that allowing for the slump in net migration due to the closure of the border, the economy will suffer no permanent drop in output as a result of the pandemic.”
SUPPORT STILL NEEDED Australia’s economy has performed better than its rich-world peers thanks to very low community transmission of COVID-19 together with massive and timely fiscal and monetary stimulus.Its economic output declined 2.5% in 2020, far smaller than a 10% drop in United Kingdom, falls of 9% in Italy, 5% in Canada and more than 3% in the United States."
