Greek Australian economists on Australia’s COVID-19 property boom

·

House prices rose 2.2 per cent in May and more than 10 per cent since the pandemic hit, the latest CoreLogic data shows. 

The news isn’t all positive, UBS chief economist George Tharenou warns, expecting that macro-prudential regulation will be in place by October to eventually slow the boom down. 

“We expect the boom to continue until there is a policy response, which we still think is most likely to be macro-prudential tightening, rather than RBA rate hikes or federal government policy/tax changes (in contrast to New Zealand),” he wrote.

Tharenou is one of Australia’s most senior economists who predicted the five-to-ten per cent price rise in January.

UBS chief economist George Tharenou.

He adds that the Australian Prudential Regulation Authority (APRA) will be watching closely for any signs of deteriorating credit quality, including a rise in mortgages and debt-to-income ratio lending examples, as the market booms. 

His analysis followed CoreLogic’s data this week, adding that the market is on track to hit 15 per cent annual growth within “a matter of months”. 

Effie Zahos, Canstar money expert, urges borrowers to refinance their loans before interest rates rise as variable and short-term fixed mortgage rates remain at or near record lows.

Effie Zahos is a money expert at Canstar (Source: Ovations!)

“Focus on knocking off your home loan debt before 2024, when the Reserve Bank has said it’s likely to increase the cash rate for the first time in 11 and a half years.”

Canstar estimates Australian homeowners could slash over $15 billion from their annual interest bills if they all refinanced. 

“The dilemma for mortgage holders is not so much trying to secure a cheap rate but more so paying off as much as they can now to secure themselves a buffer before rates do go up,” Zahos says. 

Source: Stockhead, ABC News 

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

Speak Greek café movement hopes to save the Greek language, one conversation at a time

The "Speak Greek in March" initiative aims to foster a vibrant community for Greek language learners and enthusiasts.

Liquidator struggles to find evidence for David Catsoulis’ gold mining project in PNG

David Catsoulis, a twice-bankrupt mining promoter, has been promoting a multi-billion-dollar gold mine project in Papua New Guinea for 7yrs.

Archbishop Makarios meets with Bishop Prodromos to discuss missionary work in Madagascar

His Eminence Archbishop Makarios of Australia held a cordial meeting with His Eminence Bishop Prodromos of Toliara and Southern Madagascar.

Postal voting and land registry: Key topics during Greek parliamentarians’ Sydney visit

A meeting with Greek community media in Australia was held last week at the Consulate General of Greece in Sydney by four Greek MPs.

Small business owners and miners push for tax cuts ahead of 2025 election

Small business leaders across Australia, representing the country’s 2.6 million small business owners, have launched a targeted campaign.

You May Also Like

Tributes flow for Heidelberg United FC legend John Dimtsis

Tributes have flowed after the death of Heidelburg United FC legend, John Dimtsis, on Tuesday evening after a long battle with illness.

Former travel agent Arthur Zacharias will await sentencing behind bars

A former travel agent who operated a Ponzi scheme which defrauded the owners, clients and a former Hells Angel bikie boss has had his...

Experts arrive in Melbourne ahead of Hellenic Medical Diaspora World Congress

Medical experts of Greek heritage will arrive in Melbourne, Victoria this year for the Hellenic Diaspora World Congress from November 17.