S&P: Despite low interest rates, expect demand for housing should remain subdued in short term

In the view of S&P Global Ratings, despite low-interest rates, the demand for housing should remain subdued in the short term due to the current travel restrictions, weak consumer sentiment due to the coronavirus pandemic.

Key quotes

“Downside risks to Australian property prices not yet alarming for banks.

We currently foresee a downturn in the property sector to be relatively short lived.

Estimate that Australian banks should be able to absorb increased credit losses due tocovid-19 within their annual earnings."