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Despite claims of up to 30 per cent decreases in property values, Real Estate Institute of New South Wales (REINSW) president Leanne Pilkington said investors would be better off looking at the data instead of the doom-and-gloom headlines. Ms Pilkington further argued that a lack of sellers is helping keep the value of properties higher. At the end of the day, property is a long-term asset, which means that it does not have the same volatility that the share market has. More importantly, property puts a roof over heads. As it delivers one of the most basic human necessities, it’s become one of the first things that people buy and the last that they sell, Ms Pilkington highlighted. Further, with the COVID-19 crisis prompting the closure of borders, new overseas arrivals would be limited, curtailing the largest source of population growth. As a result, demand for housing will be further hindered. “The moral of the story is don’t panic. Property has shown its resilience through economic shocks before, and we have no reason to expect it won’t do so again,” he said. Australia stands as one of the very few countries that have a balanced budget. Further, the country also records the lowest government debt in the world, which should provide investors with some comfort that the country is in a strong position to cushion the impact of the COVID-19 outbreak. Property values SQM Research’s monthly report showed the combined capital asking prices increased by 0.7 per cent for houses and 0.1 per cent for units over the month to 5 May 2020. Despite the positive figures and sentiment in the market, CommBank assumes an 11 per cent reduction in the prices of residential property nationally due to the pandemic, while a prolonged shutdown and a worsening economic climate would see falls nearly trip to 32 per cent. In a statement made to the ASX, CBA announced it had set aside $1.5 billion to cover potential losses from the COVID-19 recession, taking its total provisions for bad and doubtful debts to $6.4 billion. “Today’s announcement of an additional credit provision of $1.5 billion for the potential longer-term impacts of COVID-19 further reinforces our already-strong balance sheet settings,” CBA chief executive Matt Comyn said in a statement. Visit the given link for reading full details:  x Property market update: Sydney, May 2020 As the world continues to face the effects of the COVID-19 pandemic, how will the Sydney property market move to recover over the long-term?
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