Invest
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said.

Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said.

New figures from the Australian Banking Association show that the number of deferred loans has fallen below 300,000, a reduction of nearly 70 per cent from the peak of the pandemic when more than 900,000 loans were deferred by Australian banks.
According to REIA president Adrian Kelly, the data is definitely positive news for property markets as it signals the minimisation of forecasted financial disaster.
“This is good news for those living in investment properties as it provides increased security to tenants,” he said.
“It also means catastrophic forecasts for Australia’s housing market made at the start of CV19 are simply not coming to fruition so customers should have increasing confidence to buy and sell.”
Further, Mr Kelly noted that data published by the Australian Prudential Regulation Authority showed that the overall levels of household saving in Australia increased from March through to October.
Treasury research also showed that lower-income households were boosted by up to 20 per cent.
“This has contributed to banks seeing borrowers starting to pay back loans.”
Mr Kelly commended both the banks and the government for rolling out loan deferral programs at the outset of the pandemic, especially as many property owners have had to deal with the inability to pay rent and home mortgage due to lost employment and other socioeconomic factors.
Ultimately, the actions of federal and state governments have had a strong impact to counter the severity of the downturn, according to him.
Moving forward, REIA continues to encourage home owners and investors who are concerned about meeting their commitments to engage with the banks early and often.
Rental eviction moratoriums
Rental eviction moratoriums, another major housing policy that came out as a result of the COVID-19 outbreak, were also gradually coming to an end, Mr Kelly highlighted.
According to him, anecdotal evidence from Queensland where the moratorium has ended suggests that this has had limited to no impact and “the sky is not falling in”.
“As other jurisdictions come out of the end of their moratoriums, this could even build the case for the end of these moratoriums being brought forward.”

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more