Atlas Market Insights

What do you anticipate happening when the government ceases all pandemic- driven stimuli? Although last September was expected to be a fiscal cliff, what we saw was a gradual reduction in Government assistance. The government was very cautious with how and when they withdrew stimulus and there is no reason to believe they will act differently this time. Australia is in a strong position economically, with job vacancies now at pre-covid levels. Overall, it is unlikely we will see trouble in the marketplace due to lack of subsidies, but some segments will be more impacted than others. Renters will likely be impacted most, particularly younger ones, as they are often employed in industries that are still recovering such as tourism and hospitality. I predict that if there is a huge impact to this demographic, the government will release a more targeted round of payments or stimulus to help those impacted. Despite this, there is unlikely to be an impact on the property prices which continue to be buoyed by very low interest rates and high household savings rates. 8