Property prices in Melbourne will be affected by the current world economic reset. Stock markets will settle down once the new order is absorbed and understood. The war of words and table thumping will continue over coming weeks and months. New agreements and compromises will be negotiated. But we should accept that a new world order has already started to take shape. It isn’t temporary.
The impact on property? Once the initial shock is overcome, there will be some benefits for property prices. Just like activity pauses during an election, the current uncertainty is likely to reduce transactions. After that, we will see accelerated interest rate reductions and some adjustments to government policy settings.
The result? Prices are likely to start improving. Not quickly, but property will be seen as a safer place (or at least less volatile) than the stock market. Also, affordability will start to improve. Melbourne prices will likely continue to underperform due to higher taxes and investor unfriendly policies; but improve nevertheless.