A respiratory virus that broke out in Wuhan (China) has now officially become a global spread which cases outside of China, the coronavirus or what is now known as COVID-19 is all over the news globally.
Besides the obvious health risks, the coronavirus fears to impact an economic slow down and serious impact on our property market. The Australian government imposed a two-week ban, tourists traveling from mainland China to Australia. The coronavirus having significant impact to the Australian economy due to being heavily dependent on the spending of Chinese tourists and students, as well as Chinese export revenue.
Let’s break this down a bit, Chinese visitors are Australia’s largest international tourism market, If Chinese tourism decrease the Australian economy will take a hit. By Australia being heavily dependent on China, both virus outbreak and travel bans Australia could suffer a combined $2.3 billion dollars in revenue due to less Chinese tourist and students visiting our shores. Once the Australian economy takes a hit the property market becomes affected, meaning property in Australia becoming less affordable for buyers’ dues to lower wages and increase of unemployment, fewer Chinese students and investors coming to Australia impacting in less demand of property investment and property rental.
However, with no crystal ball to predict the future let’s understand the potential virus impact on the market is too early to forecast at this coming stage. It’s important we regularly monitor Australian property news to be informed in the outcomes, impacts and trends.