It all depends on how this plays out. - Australians have been fed by the banks to keep on borrowing, buying more expensive properties. - In the past 30 years, there hasn't been a recession. - The people that are buying the properties are mainly first home buyers. They haven't experienced recession first hand unless they're 40yrs old first home buyers. - This COVID-19 outbreak will be a good test for the market and people's sentiment. - If a recession hits --> people get unemployed --> can't pay mortgage --> then property prices will go down. Simple as that.
I believe the government will do all they can to support the economy. In the coming few weeks, I believe the auction clearance rate will be affected and hence price affected too (less competition).
If people's sentiment is to keep cash and on a fence. It doesn't matter if there's a QE or further cut on the interest rate. People just don't want to spend.
