Collapse in Housing Market Sentiment across Australia | ASX Market Update

Australian Banking Association has updated that the Australia’s banks will be implementing a new phase of support customers to make repayment of the loans, as customers are nearing the end of six-month loan repayment deferral period. Many customers have chosen to resume making repayments and the customers whose income is reduced or are facing financial difficulty because of COVID-19, they shall be contract as they approach the six months deferral period to ensure that wherever feasible they can return to repayments via a restructure or variation to their loan.

Treasury Wine Estates has flagged a 21 per cent earnings slump compared with the previous financial year as impacts from the COVID-19 outbreak damages global operations. The manufacturer has tipped earnings before tax and interest for the last financial period to be between $530m and $540m, noting costs of doing business throughout the pandemic and the challenging US wine market affected performance. TWE also highlighted extreme heat during key stages in the growing season resulted in a smaller yield and the 2020 Australian vintage total intake to be approximately 30 per cent lower than what was produced in 2019.

Housing market sentiment across Australia has collapsed with the COVID-19 economic downturn expected to push down property prices by almost 15 per cent. The latest National Australia Bank residential property survey reveals housing market sentiment in the second quarter has dropped to negative 33 points, a 71 point fall compared with the first quarter that recorded an index of 38 points. NAB’s survey indicated the biggest impacts were likely to be experienced in both Victoria and New South Wales, where house prices and rents are expected to fall in the next 12 months.

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