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

Dhwani Mehta FXStreet

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."

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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