<p>Repeat buyers are one of the strongest measures of confidence in any apartment development.</p>

<p>At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.</p>

<p>Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe></p>

<p>"I had some boxes I wanted to tick," he says.</p>

<p>Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.</p>

<p>“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.</p>

<p>He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356818]</p>

<p>After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.</p>

<p>"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."</p>

<p>Today, Keith says the move has completely changed how he experiences Newcastle.</p>

<p>"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356828]</p>

<p>Beyond the location, he says it's the sense of community that has surprised him most.</p>

<p>"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."</p>

<p>For Aimee and Lyle Goodman, the journey started almost by chance.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe></p>

<p>The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.</p>

<p>"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."</p>

<p>As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.</p>

<p>"We actually catch up more as a family now," Aimee says.</p>

<p>"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356829]</p>

<p>Lyle says their confidence came from GWH's reputation within Newcastle's building industry.</p>

<p>"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."</p>

<p>That confidence only grew throughout the buying process.</p>

<p>"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351104]</p>

<p>Aimee says one moment stood out.</p>

<p>"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."</p>

<p>The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.</p>

<p>Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356822]</p>

<p>ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;</p>

<p>The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=356826]</p>

<p>For Keith, the appeal remains straightforward.</p>

<p>"You feel at home even before you've moved into your home."</p>

<p>For Aimee, the change is measured in time.</p>

<p>“I just felt like I had more time,” she says.</p>

<p>[smartcode_project:default project_id=135096 project_image_fid=351102]</p>

<p>Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.</p>

<p>ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.</p>

<p>[smartcode_project_cta:default project_id=135096]</p>


Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

<p>Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.</p>

<p>Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.</p>

<p>"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.</p>

<p>"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372549]</p>

<p>Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.</p>

<p>"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.</p>

<p>The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=314259]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.</p>

<p>According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.</p>

<p>Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.</p>

<p>[smartcode_project:default project_id=4661 project_image_fid=372550]</p>

<p>Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.</p>

<p>The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.</p>

<p>The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.</p>

<p>"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."</p>

<p>The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.</p>

<p>With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.</p>

<p>[smartcode_project_cta:default project_id=4661]</p>


Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

<p>Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.</p>

<p><a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.</p>

<p>The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.</p>

<p>Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.</p>

<p>Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355297]</p>

<p>The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.</p>

<p>Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.</p>

<p>"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.</p>

<p>The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355293]</p>

<p>The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.</p>

<p>According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.</p>

<p>The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;</p>

<p>Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355303]</p>

<p>The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.</p>

<p>"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.</p>

<p>"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."</p>

<p>[smartcode_project:default project_id=102717 project_image_fid=355304]</p>

<p>Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.</p>

<p>Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.</p>

<p>[smartcode_project_cta:default project_id=102717]</p>


Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

<p>New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.</p>

<p>It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.</p>

<p>With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.</p>

<p>The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.</p>

<p>Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=372394]</p>

<p>Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.</p>

<p>"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.</p>

<p>"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=953]</p>

<p>Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.</p>

<p>Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.</p>

<p>That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=925]</p>

<p>Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.</p>

<p>Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.</p>

<p>"The Lennox is where aspirational living becomes attainable," Hamblett said.</p>

<p>"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."</p>

<p>Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.</p>

<p>"At The Lennox, lifestyle is not an afterthought, it is the foundation."</p>

<p>[smartcode_project:default project_id=5743 project_image_fid=5374]</p>

<p>The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.</p>

<p>Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.</p>

<p>That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.</p>

<p>"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."</p>

<p>[smartcode_project_cta:default project_id=5743]</p>


The apartment price gap drawing Sydney buyers west

<p>A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.</p>

<p>The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.</p>

<p>The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.</p>

<p>The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.</p>

<p>Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.</p>

<p>"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.</p>

<p>"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."</p>

<p><img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" /></p>

<p>Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.</p>

<p>Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.</p>

<p>Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.</p>

<p>"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.</p>

<p>"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."</p>

<p>Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.</p>

<p>Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.</p>


Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Coronavirus

<html><body>
<p><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.15999984741211px;">On Sunday, the government announced a </span><a href="https://treasury.gov.au/coronavirus" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.15999984741211px;">second</a><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.15999984741211px;"> coronavirus economic package.</span></p>
<p>In addition to further one-off payments, the package includes some of the most significant changes to social security payments Australia has ever seen, even if only on a temporary basis.</p>
<p>The <a href="https://www.propertyobserver.com.au/https://twitter.com/AlboMP/status/1242242080400793600" target="_blank">amendments</a> passed by parliament on Monday night expand them further.</p>
<p>The package effectively doubles rates of JobSeeker Payment for most people without children.</p>
<p>The maximum rate for a single recipient without dependants is currently A$565.70 per fortnight. Lone parents and those over 60 who have been on benefit for nine months or more currently get more, while members of couples each get somewhat less.</p>
<p>For the six months from April 27 the government will boost it by A$550 per fortnight through a special time-limited <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf" target="_blank">Coronavirus Supplement</a>.</p>
<p>Importantly, the extra $550 will go to all current recipients, including those who get less than $565.70 because they have assets or are in part-time work.</p>
<p>It will also go to both existing and new recipients of the Youth Allowance JobSeeker Payment, Parenting Payment, Farm Household Allowance and Special Benefit.</p>
<p>Thanks to Monday night’s <a href="https://www.smh.com.au/politics/federal/federal-parliament-passes-coronavirus-economic-stimulus-package-20200323-p54d73" target="_blank">amendments</a>, it will now also go to <a href="https://www.anneruston.com.au/supporting_students_through_the_effects_of_coronavirus" target="_blank">full-time students receiving Abstudy, Austudy and Youth Allowance for Students</a>.</p>
<p>There are also <a href="https://www.theaustralian.com.au/nation/politics/coronavirus-stranded-visa-hold%20ers-thrown-welfare-lifeline-and-extended-stay/news-story/5697ef9768c61255afa9330adcb10994" target="_blank">reports</a> that special payments (and the Coronavirus Supplement) will be made available to temporary visa holders who lose their jobs or suffer significant financial hardship because of the coronavirus.</p>
<p>In addition, the government will no longer need legislation to make further changes to settings, giving the Social Services minister unprecedented powers.</p>
<p>This will give the government the ability to respond flexibly as circumstances change.</p>
<h2>One million now, an extra million soon</h2>
<p>Roughly 1.3 million existing recipients will receive the supplement, including the 200,000 or so students added on Monday.</p>
<p>To them will be added as many as <a href="https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansardr/bead2837-76c9-4ce9-952b-eafe8e2d614f/&amp;sid=0045" target="_blank">one million more</a>, who are not currently receiving the JobSeeker or any other payment.</p>
<p>Among them will be permanent employees who are stood down or lose their jobs, sole traders, the self-employed, casual workers and contract workers who find themselves meeting the benefit income tests as a result of the coronavirus.</p>
<p>Included are people required to care for people who are affected by the coronavirus.</p>
<h2>Accelerated processing</h2>
<p>The assets test for JobSeeker Payment, Youth Allowance Jobseeker and Parenting Payment will be waived for the duration of the Coronavirus Supplement.</p>
<p>In addition, the normal one week waiting period will be waived, as will the liquid assets test waiting period (which can be up to 13 weeks).</p>
<p>People already in this waiting period will be given immediate access to payments.</p>
<p>It is also important that the Coronavirus Supplement will be paid automatically. Current recipients will receive the full $550 on top of their regular payment without asking for it.</p>
<p>Services Australia is putting on an extra 5,000 staff to deal with the inflow of new claimants and <a href="https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Income_Support_for_Individuals.pdf" target="_blank">accelerating claim process</a>.</p>
<h2>Australia moves up the ranks</h2>
<p>These changes will significantly boost the adequacy of working age social security payments in Australia – at least temporarily.</p>
<p>This chart shows where Australia sat in 2019 compared to other members of the Organisation for Economic Co-operation and Development on replacement rates – the percentage of previous after-tax earnings that an unemployment payment provided to a single unemployed worker who had previously been on two-thirds of the average wage.</p>
<p>Australia is coloured red, and is at the bottom of the pack.</p>
<p><strong>OECD 2019 unemployment income replacement rates</strong></p>
<p><a href="https://images.theconversation.com/files/322510/original/file-20200324-155652-pmiepm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/322510/original/file-20200324-155652-pmiepm.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a></p>
<p><span class="caption">Replacement rate during the second month of unemployment for single worker earning two-thirds of average wage, including housing assistance.</span> <span class="attribution"><a class="source" href="https://stats.oecd.org/Index.aspx?DataSetCode=NRR" target="_blank">Source: OECD, Net replacement rates in unemployment</a></span></p>
<p>A <a href="https://insidestory.org.au/social-protection-and-the-viral-recession/" target="_blank">number of countries</a> have boosted their payments, at least temporarily, in response to the coronavirus.</p>
<p>The chart below shows where Australia and New Zealand and France sit now, compared to the 2019 replacement rates of other countries.</p>
<p>Australia is again coloured red, but has climbed toward the middle of the pack.</p>
<p><strong>OECD unemployment replacement rates and announced increases</strong></p>
<p><a href="https://images.theconversation.com/files/322509/original/file-20200324-155658-qitd77.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/322509/original/file-20200324-155658-qitd77.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a></p>
<p><span class="caption">Replacement rate during the second month of unemployment for single worker earning two-thirds of average wage, including housing assistance.</span> <span class="attribution"><a class="source" href="https://stats.oecd.org/Index.aspx?DataSetCode=NRR" target="_blank">Source: OECD, Net replacement rates in unemployment, government announcements</a></span></p>
<p>The charts show that Australia’ short-term earnings replacement rate climbs from 38 per cent to 68 per cent, because the base rate nearly doubles while rent assistance stays the same.</p>
<p>Replacement rates will be lower for higher income workers who lose their jobs and higher for part-time workers and casuals.</p>
<p>It is worth noting that other countries are adopting approaches that differ in where support is being targeted. Denmark, for example, is providing a direct wage supplement to employers of 75 per cent of wages up to a ceiling, on the condition that they do not lay off workers.</p>
<p>This is actually less than the current replacement rate of 84 per cent in Denmark, but if it is successful it would effectively mean that Danish workers would continue to receive their normal salary (a 100 per cent “replacement rate”).</p>
<p>It remains to be seen whether that strategy works.</p>
<h2>Improvements on delivery</h2>
<p>The government has indicated that the stimulus package is “scalable”, meaning that it is possible to increase the amounts even further and to extend their duration.</p>
<p>And the government has already fixed some gaps in its initial plan relating to students and newly arrived residents and temporary visa holders. Permanent residents will be eligible for assistance immediately and not subject to current waiting periods - which can be up to four years.</p>
<p>Without extending benefits to temporary visa holders we would have had what academics <a href="https://insidestory.org.au/of-visas-and-viruses/" target="_blank">Henry Sherrell and Peter Mares</a> warned would be hundreds of thousands of people who are suddenly unemployed, without access to welfare, and without a method to return to their country of citizenship.</p>
<p>The provisions of the special benefit that will be available to temporary visa holders <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/special-benefit/who-can-get-it#a1" target="_blank">define</a> severe financial hardship as earning less than the highest special benefit fortnightly payment, being unable to improve that financial position and having limited savings.</p>
<p>There is another group whose status should be clarified urgently - that is people who have applied for permanent residence and are still in that application process. There is a case for treating them as if they had already become permanent residents rather than temporary workers.</p>
<h2>The ‘benefit cliff’ remains</h2>
<p>A remaining downside with potentially big unintended consequences is the legislated proposal doesn’t yet adjust the spouse income test, excluding many couples where one earner loses their job and leading to a perverse and undesirable “benefit cliff”.</p>
<p>If the recipient’s spouse is working and not receiving a Jobseeker or equivalent payment, then the JobSeeker payment will be reduced by <a href="https://www.propertyobserver.com.au/https://www.servicesaustralia.gov.au/individuals/topics/income-test-jobseeker-payment-partner-allowance-and-widow-allowance/29411" target="_blank">60 cents for every dollar the partner earns over $994 per fortnight</a>.</p>
<p>This means that the recipient can receive some JobSeekers Payment – and hence the full $550 per fortnight Coronavirus supplement - until the working partner’s income reaches $1,844 per fortnight. At that point they face the <a href="https://theconversation.com/getting-poorer-while-working-harder-the-cliff-effect-113422" target="_blank">“benefit cliff”</a>.</p>
<p>If the working partner has an income of $1840 per fortnight, the recipient gets the full supplement of $550 per fortnight, but if the worker has an income of $1850 a fortnight, the recipient gets nothing. The same cliff faces single people, as well.</p>
<p>But this partner income threshold of $1850 per fortnight ($925/week) is right in the middle of the Australian income distribution.</p>
<p>We calculate that, among two-earner couples aged 25-54, of the primary earners who lose their job, about half will get the Coronavirus Supplement, while of the secondary earners, only somewhere between a quarter and a third will get it.</p>
<p>(These are rough estimates based on Bureau of Statistics income survey estimates of the personal income distributions).</p>
<p>Given that in most couples the secondary earner is female, the different treatment has the potential to discriminate against women.</p>
<p>One way to eliminate the cliff would be to integrate the Coronavirus Supplement more properly into the income support system, so that people with spouse income above these cutoffs would continue to receive a reduced payment.</p>
<p>The government has asked for power to fix this issue via regulation, but has not yet announced how it will address it.</p>
<h2>The scale of the challenge</h2>
<p>An extra <a href="https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansardr/bead2837-76c9-4ce9-952b-eafe8e2d614f/&amp;sid=0045" target="_blank">one million</a> recipients (the treasurer’s estimate) would mean that the share of the working age population receiving income support climbed from 14.2 per cent to 18.7 per cent, an increase of 4.5 percentage points, which is bigger than the 3.5 and 3.8 percentage point increases during Australia’s two previous post-war recessions in the early 1980s and early 1990s.</p>
<p>In both of these earlier recessions, the unemployment rate shot up from under 7 per cent to near 10 per cent or higher within a year. The current increase will take place in the next six months, rather than over a full year.</p>
<p>Not all the effect will directly be in the unemployment rate. Some will be in the non-participation rate as people decide to neither work nor look for work.</p>
<p>The best measure to watch to track the labour market will be the reduction in hours worked.</p>
<p>International experience also suggests that it will be substantial. <a href="https://www.bloomberg.com/news/articles/2020-03-20/canada-sees-500-000-employment-insurance-applications-this-week" target="_blank">Service Canada</a> is reported to have received more than 500,000 applications for Employment Insurance in the past week, 20 times the number recorded in the same week a year ago and equivalent to about 2.5 per cent of the labour force. Similar trends have appeared in the <a href="https://www.theguardian.com/business/grogonomics/2020/mar/24/when-it-comes-to-unemployment-in-australia-definitions-have-been-broken" target="_blank">United States</a>.</p>
<p>In Australia, we are already seeing the payment system struggling under <a href="https://www.propertyobserver.com.au/https://twitter.com/ServicesGovAU/status/1242225599835516929?s=20" target="_blank">the load of new applications</a>.</p>
<p>Ultimately, the key goal of our economic response to the coronavirus must be to share the economic costs.</p>
<p>The government has made an excellent start in the package announced on Sunday and extended on Monday.</p>
<p>But we have to be prepared to ramp it up and expand support so that everyone living in Australia is adequately supported and the burden of the crisis is shared fairly.<img src="https://counter.theconversation.com/content/134358/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;"></p>
<p><span><a href="https://theconversation.com/profiles/peter-whiteford-2016" target="_blank">Peter Whiteford</a>, Professor, <em><a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292" target="_blank">Crawford School of Public Policy, Australian National University</a></em> and <a href="https://theconversation.com/profiles/bruce-bradbury-6437" target="_blank">Bruce Bradbury</a>, Associate Professor, Social Policy Research Centre, <em><a href="https://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a></em></span></p>
<p>This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/coronavirus-supplement-your-guide-to-the-australian-payments-that-will-go-to-the-extra-million-on-welfare-134358" target="_blank">original article</a>.</p>
<h1 class="legacy"><span style="color: #333333; font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.15999984741211px;"><a href="https://theconversation.com/profiles/peter-whiteford-2016">Peter Whiteford</a> and <a href="https://theconversation.com/profiles/bruce-bradbury-6437">Bruce Bradbury</a></span></h1>
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j.ballantyne1990-6AQqhLzZaK

Coronavirus supplement: your guide to the Australian payments that will go to the extra million on welfare

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<p>Over 80 per cent of residential real estate agents around the world say the coronavirus pandemic has cut their 2020 earning expectations, according to the first international survey of real estate on the impact of the outbreak.</p>
<p>More than 60 countries took part in the Juwai IQI Market Intelligence 2020 survey, with every country citing a loss of earnings.</p>
<p>Real estate agents in Greece have the worst outlook.</p>
<p>Some 95 per cent of Greek agents expect the coronavirus pandemic to cut their earnings in 2020, with two-thirds of those forecasting they will earn "significantly less."</p>
<p> </p>
<p><img src="https://www.urban.com.au/images/2020/3/Screen%20Shot%202020-04-01%20at%2010.26.02%20am.png" alt=""></p>
<p>As well as Greece, more than four out of five agents in a further five countries expect to earn less in 2020 due to the coronavirus pandemic.</p>
<p>In Australia, 84% of agents expect to earn less in 2020, with 58% suggesting the impact on their earnings will be significant and only 27% expect it to be moderate. </p>
<p>In Singapore, 88% of agents expect to make less.</p>
<p>The share of Singapore agents who expect to earn "a little less" is, at 47%, larger than the 41% who believe they will make "significantly less."</p>
<p>Malaysian and Philippine agents are the least pessimistic among those surveyed.</p>
<p>In Malaysia, 74% of agents expect to earn less in 2020, with 38% expecting to earn “significantly less” and 33% expecting to earn “a little less.”</p>
<p>In the Philippines, 68% of agents expect to earn less in 2020 due to the Coronavirus, with 38% expecting to earn “significantly less” and 30% expecting to earn “a little less.”</p>
<p>One of the strategies agents will use to preserve their incomes, according to the report, is to invest more in marketing to foreign buyers. Worldwide, 18% of agents report foreign buyers are one of their strategies.</p>
<p>Perhaps because of the relative significance of foreign buyers to their markets, agents in the Philippines and Portugal are the most likely to report plans to do so. In both the Philippines and Portugal, 26% of agents plan to increase their foreign buyer marketing.</p>
<p>In Malaysia and Thailand, 22% of agents will increase their investment in marketing to foreign buyers. In Greece, 21% of agents will do so. The share is 18% in Singapore, 16% in both Canada and Australia, and 12% in the USA.</p>
<p> </p>
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wdavis-8cCN98p7xp

Coronavirus driving agents earnings down worldwide; Juwai IQI Market Intelligence 2020 survey

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<h2><strong>OPINION:</strong></h2>

<p>Earlier this month, I wrote about <a href="/expert-insights/buying/how-will-the-coronavirus-impact-australia-s-property-market"><u><strong>how the market will react to the Coronavirus (COVID-19)</strong></u></a> before it became a pandemic. Now, three weeks on, we have seen the impact it has on numerous <a href="/guides/covid-19-how-to-adapt-to-working-from-home"><u><strong>businesses and our daily lives</strong></u></a>. Currently, Australians are living through one of the <a href="/news/covid-19-how-the-world-previously-recovered-from-sars-and-whether-or-not-we-can-do-the-same-this-time-round"><u><strong>most significant economic and social upheavals</strong></u></a> in our history.</p>

<p>For the real estate industry, the most direct impact from changes announced by the government would certainly be the social distancing restrictions prohibiting open inspections and auctions. These restrictions have forced a lot of new changes to the way they operate, including virtual inspections and online auctions. Last weekend we saw a mix of selling via online and phone auctions, as well as going back to more traditional ways of selling such as private sale or selling by tender.</p>

<p>Virtual Reality for real estate has been around for many years, allowing people to “try before you buy” without spending time and money travelling to scope out properties. However, the traditional open house has always proved popular as one can physically see, touch, hear and even smell the house and environment they may potentially be living in. But with these restrictions in place now, <a href="/guides"><u><strong>technology will again come into the forefront</strong></u></a> and will eventually become the new norm.</p>

<p>While the industry is able to change and adapt, the more telling signs will be the impact on the number of listings and days on the market. From the seller’s point of view, if they are not under pressure to sell, they may hold off until after this pandemic is over. On the other hand, if we continue to see job losses, many house owners under financial stress may be forced to sell.</p>

<p>For investors, at a time when many people sit on the sidelines waiting to see what’s going to happen, many will see this as a great opportunity to buy a property considerably cheaper than they would have a few weeks ago and much cheaper than they will have to pay for it in 12 months.</p>

<p>The government has no choice but to offer relief for those affected by the crisis. The Prime Minister reinforces that they are “building bridges” to help us get to the other side. At this stage, it looks like commercial and residential landlords will be receiving some type of support, such as concessions on negative gearing and land tax. This will mean they will be asked to forgo rent, hence easing some pressure off renters. Already several major retailers, particularly those in shopping centres, have said they will not pay rent while closed. This is likely to extend to office tenants that are under similar stress.</p>

<p>The RBA and the government’s focus is on supporting businesses and households who will suffer significant income hits, forcing an emergency rate cut to a record low of 0.25%. RBA governor Phillip Lowe explained,</p>

<blockquote>
<p><em><strong>“We are clearly living in extraordinary and challenging times, the Coronavirus is first and foremost a very major public health issue, but it’s also become a major economic problem and it’s having deep ramifications for financial systems right around the world.”</strong></em></p>
</blockquote>

<p>It is still uncertain as to what the ultimate economic impact of COVID-19 will be, as well as what the fall out will be for property. However, with most economists accepting that we’re heading for, if not already in, a recession, some are wondering if COVID-19 will finally cause our property markets to crash. </p>

<p>The bright side is that historically, after each global disruption, there has been a rebound and increase in property prices, and there is no reason to suggest this will be any different as the underlying property fundamentals are still strong.</p>

<p><a href="/news/covid-19-understanding-what-you-can-and-cant-control-the-importance-of-cross-referencing-facts"><u><strong>Look after one another</strong></u></a> and <a href="/guides/covid-19-how-apartment-dwellers-can-keep-themselves-safe-during-self-isolation"><u><strong>stay safe</strong></u></a>.</p>
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Changes the real estate industry will experience as a result of the Coronavirus

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<p>The national cabinet has agreed to consider advice from Treasurers on commercial and residential tenancies at their next meeting on Friday April 3.</p>
<p><span>Tenants and landlords are left in limbo as to how they will be affected.</span></p>
<p><span>A six month ban on evictions has been announced, although the plan is yet to be fully outlined.</span></p>
<p><span>It was nearly a week ago that Scott Morrison said there will "soon be an announcement" for the hundreds of </span>thousands of people who have lost their jobs and small business operators who can't pay rent.</p>
<p>He described the issue as complex. </p>
<p>"A lot of progress has been made over the course of today and over the course of this week, we'll be looking to hopefully finalise some measures", Morrison said when responding when the government will announce how they will help to ease people's rent bill.</p>
<p>"This is obviously a complicated issue because you've got a tenant, you've got a landlord, you've got creditors and all of those issues and you need to solve for the entire chain that's there", Morrison said.</p>
<p>It was to be considered at the National Cabinet that evening, however there is still no formal decision made.</p>
<p class="x_MsoNormal"><span lang="EN-AU">The president of the REIA, Adrian Kelly said while he is very supportive of the Government's efforts, the REIA was disappointed</span> with the simplistic approach of the Prime Minister’s message.</p>
<p class="x_MsoNormal">He suggested the PM's message "ignores the tenancy arrangement and thus raises more questions than it answers."</p>
<p class="x_MsoNormal">“Real estate agents are the middle persons who facilitate the agreement between landlords and tenants and manage it as well as the property."</p>
<p>Adrian Kelly said the government's moratorium on evictions overlooks the fact that real estate agents and agencies are also going to be affected by the ongoing crisis.</p>
<p>"We need to address the support of agents so that what the prime minister wants, in terms of landlords and tenants — finding a solution to get through the crisis, can be achieved," Kelly said.</p>
<p>"Estate agents will work very hard to facilitate the role between landlord and tenant, and to do this they need income."</p>
<p class="x_MsoNormal">The parliaments of two states, NSW and Tasmania have passed legislation on evictions although they are unlikely to become law since they did not emerge from the government benches.</p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"> </p>
<p> </p>
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The national cabinet to consider commercial and residential tenancies on April 3

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Australia is teeming with people who have questions about the impact of the virus crisis on real estate and are seeking urgent answers.</span> </p>
<p class="p1"><span class="s1">My webinar with buyers’ agent Rich Harvey of propertybuyer on 24 March attracted a big audience – our largest ever - and we received more questions than we could handle during the live event.</span></p>
<p class="p1"><span class="s1">Many of those questions including some of the fundamental ones that everyone is asking: will property values decline, how long will it last, is this a good time to buy, what happens if my tenant can’t pay the rent and if I ask my lender for a mortgage holiday, will it affect my credit rating?</span></p>
<p class="p1"><span class="s1">Here are some of the key questions or comments, and my responses.</span></p>
<p class="p1"><strong><span class="s1"><em>Is now the time to be buying an investment property? Will there be tenants in the market?</em></span></strong></p>
<p class="p1"><span class="s1">I think this is a good time to be looking for an investment property. There will be opportunities to buy well in the current climate. Buyers will be able to negotiate from a position of strength. Just be careful to select a location with the credentials for long-term growth. There will be tenants – vacancies are low around the nation and the various government stimulus packages will assist people who might otherwise struggle to pay their rent.</span></p>
<p class="p1"><strong><span class="s1"><em>Auction clearance rates will change now that the first wave of lock-down controls come into effect. Do you predict that the market will continue to be healthy amidst rising unemployment?</em></span></strong></p>
<p class="p1"><span class="s1">Yes, I think the market will continue to be healthy. The rise in unemployment will be temporary – if it was long-term, extending right throughout the year, it would have a material impact on markets and property prices, but I expect it to be relatively short-term. Auctions will be curtailed by the government restrictions on gatherings, but most sales do not occur via auction so that in itself will not be detrimental to property prices. Only 10-11% of sales across Australian happen through auctions. It will cause some vendors who particularly want auctions to withdraw their properties from sale, which will exacerbate the shortage of listings and put a floor under property values.</span></p>
<p class="p1"><strong><span class="s1"><em>Do you think vacancy rates will rise in the short term with unemployment increasing?</em></span></strong></p>
<p class="p1"><span class="s1">I think there will be some increase in vacancy rates in the short-term, but mainly because owners who had been using AirBNB rather than permanent rental situations will now be seeking permanent tenants (because of the travel restrictions, which are killing the AirBNB market at the moment). Most markets should be able to absorb this, because vacancy rates are very low in most locations across Australia.</span></p>
<p class="p1"><strong><span class="s1"><em>Can you help unpack how a potential 10% unemployment rate cannot have any impact on property prices going forward?</em></span></strong></p>
<p class="p1"><span class="s1">If we had a 10% jobless rate long-term in Australia, it would impact on property prices – but we won’t have that. We will have a short, sharp spike in unemployment but it won’t last long enough to cause a significant fall in house prices.</span></p>
<p class="p1"><span class="s1"><em>Will this situation promote longer-term demographic shifts to more people working remotely and strengthen property growth in regional areas?</em></span></p>
<p class="p1"><span class="s1">I think that is a trend anyway and has helped to drive the boom in the past 2-3 years in Regional Victoria, particularly in towns within 1-2 hours of Melbourne, and also the Central Coast just outside Sydney. The current situation will probably enhance that trend towards people working remotely and therefore making lifestyle changes. Increasingly, there are fewer and fewer reasons to be close to the CBDs of major cities.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><strong><span class="s1"><em>Do you have any perspectives on negotiating with developers during this time, especially as first home buyers.</em></span></strong></p>
<p class="p1"><span class="s1">Everything is negotiable at any time but in these turbulent times I suspect buyers will be able to negotiate favourable deals when buying new product from developers. It would be a good time to present yourself as a buyer at a time when many people will be standing back or sitting on the fence.</span></p>
<p class="p1"><strong><span class="s1"><em>Over the next few months if you find yourself unable to keep up with your loans, get on the front foot and call the credit provider early.<span class="Apple-converted-space">  </span>This will not only relieve some pressure as you won’t be living in fear of what they might do, but it will most likely help to protect your credit file in the process.<span class="Apple-converted-space">  </span>If the emotion is too close to home for you to liaise with the credit provider yourself, then engage a professional to do it for you. But check in early with your lenders.</em></span></strong></p>
<p class="p1"><span class="s1">I think that is sound advice. The major lenders have made it clear that they want to help their mortgage customers, as well as businesses, because they have a strong vested interest in keeping their customers healthy. Anyone who is struggling with loan repayments should contact their lenders and work out a solution with them. The major banks are indicating that they will allow people to pause their repayments for a period of time.</span></p>
<p class="p1"><strong><span class="s1"><em>What should landlords do if a tenant advises they can’t pay their rent?</em></span></strong></p>
<p class="p1"><span class="s1">I don’t think it’s possible to give a generalised answer to that. It needs to be handled on a case-by-case basis. But a lot of the emphasis in the various stimulus packages is on assisting people in those situations. The benefits for people out of work have been significantly increased to try to avoid situations where people can’t pay their rent. But, for any landlords who fact that situation, work with your tenants, or your property manager, to come up with a solution – perhaps by reducing the rent for a short period.</span></p>
<p class="p1"><strong><span class="s1"><em>Should I reduce the rent before the tenants ask?</em></span></strong></p>
<p class="p1"><span class="s1">It may be a good strategy, to pre-empt any problems – perhaps offer a reduction in the rent for a short period to help get through the difficult period. It’s preferable to do that, rather than losing your tenant. I note that some landlords are doing that, according to media reports. But it needs to assessed on a case-by-case basis.</span> </p>
<p class="p1"><strong><span class="s1"><em>Should we hold on to our savings and see how low the market will go?</em></span></strong></p>
<p class="p1"><span class="s1">That kind of strategy seldom works. It’s indicates a short-term viewpoint when real estate should be approached with long-term horizons. The other problem with that kind of approach is that it’s impossible to pinpoint the bottom of the market – the data that shows the bottom of the trough doesn’t appear until a long time after the event. A better approach is to look for good buying opportunities in areas with the credentials for long-term growth.</span></p>
<p class="p1"><strong><span class="s1"><em>What is your take on people losing their jobs who have a mortgage, will they lose their homes, if so how will they get a rental in such a tight rental market?</em></span></strong></p>
<p class="p1"><span class="s1">One of the key factors in the response from the Federal Government and the major banks is to support people who lose their jobs and have difficulty paying the mortgage. Lenders have said they will offer mortgage holidays – e.g. suspending payments for six months. The tight rental markets are being eased, to a certain extent, by investors who previously used AirBNB now putting their properties into the permanent rental pool (because the travel restrictions are killing the AirBNB market).</span></p>
<p class="p1"><strong><span class="s1"><em>My husband is very nervous and wants me to sell our family home.<span class="Apple-converted-space">  </span>What’s your advice on selling now.</em></span> </strong></p>
<p class="p1"><span class="s1">No, please don’t do that. There is no need to panic to that degree. We are not going to see property values collapse and anyone who struggles to pay the mortgage during this crisis period should be able to arrange a suspension of their regular payments with their lender.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><strong><span class="s1"><em>If I were to make an opportunistic buy, what’s to say I can rent it out in a timely manner in the current environment?</em></span></strong></p>
<p class="p1"><span class="s1">A sensible investor would, firstly, buy in a location where the vacancy rate is low (and most locations around the nation currently have low vacancies) and, secondly, speak to property managers in the local area about the prospects for renting the property you’re thinking of buying – before signing a contract.</span></p>
<p class="p4"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p4"><span class="s2"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p5"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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13 Coronavirus property questions answered by Hotspotting's Terry Ryder

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<p>Non-essential travel to regional NSW towns and remote communities must be cancelled and Easter holidaymakers should indefinitely postpone their visits, in line with the nationwide effort to slow the spread of the COVID-19 pandemic.</p>
<p>Deputy Premier and Minister for Regional NSW John Barilaro said National Cabinet has clearly asked everyone to stay at home unless they are shopping for essentials, are receiving medical care, are undertaking daily exercise or are attending work or school.</p>
<p>“My message today is simple, now is not the time to travel from metropolitan areas to regional NSW for a holiday, for meetings, or even to relocate yourselves for a longer period - the safest thing you can do right now is stay in your community,” Mr Barilaro said.</p>
<p>“This also applies to people living in regional NSW towns, because the virus does not discriminate and does not care about borders, so now is not the time to travel between towns, whether it be for meetings or even to visit family and friends.</p>
<p>“To help slow the spread we need to do the right thing by our families, friends and neighbours, which means staying 1.5 metres away from others, avoid social gatherings, wash hands and ensure that if you are sick, that you self-isolate.”</p>
<p>Mr Barilaro said he is particularly worried about city residents using the upcoming Easter break to try and relocate themselves to regional NSW in an attempt to escape quarantine, which would be extremely dangerous for rural and remote communities.</p>
<p>“We continue to battle the worst drought in recorded history, we have endured bushfires that took the lives of 25 people and destroyed more than 2,400 homes and what we don’t need is people spreading the virus across regional NSW,” Mr Barilaro said.</p>
<p>“I know towns hit hard by the drought and bushfires are relying on holidaymakers to keep people in jobs and put food on the table, but right now health and safety is paramount and lives depend on every single one of us doing our part by staying at home.”</p>
<p>Mr Barilaro said help is available to people across regional NSW, particularly people who are isolated and the elderly, and encouraged anyone who needs a hand to call the NSW Government’s COVID-19 hotline on 13 77 88.</p>
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Non-essential travel to regional NSW towns and remote communities must be cancelled: NSW Government

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<p>EXPERT OBSERVER</p>
<p>This week, historic negative economic outcomes were seen in both Europe and the US. Financial markets instead focused on the wave of stimulus announced, particularly in the US.</p>
<p>Of the data released, the first focus for markets was the Markit PMI’s for key developed nations. Whereas the shock ex-China to date has been concentrated in manufacturing, services were hit hard in the March preliminary reading. In Japan, the service PMI fell from 46.8 in February to 32.7 in March; in the US, a similar decline was seen from 49.4 to 39.1; while in Europe, the loss was a staggering 24pts from 52.6 to 28.4 – a very unfavorable comparison to the GFC low of 39.2 in 2009. </p>
<p>While severe, these shocks pale in contrast to the deterioration seen this week in US initial jobless claims. As we flagged last week, the first few weeks of the US contagion have seen a never-before-seen increase in US unemployment. Following the 71k increase in the last report to 282k claimants, in this update a further 3 million new claimants were reported, taking initial claims to 3.28 million. Prior to this outcome, the historic peak was 695k back in 1982.</p>
<p>Note that while the 2020 initial outcome is almost five times the scale of the 1982 peak, the labour force has only grown 50% since. Moreover, this week’s outcome will not be a one off. It is still early days in this crisis; job losses have been staggered; and there have been numerous reports of claim backlogs to be assessed. Clearly the US is facing into an immense shock. </p>
<p>It is not surprising then that the US Congress has responded with a stimulus package also of historic proportions ($2 trillion). This will include support to all low and middle-income households in the form of cash handouts; extended unemployment benefits; loans to small business which can be forgiven in time if the funds are used for certain purposes such as keeping on staff; as well as loans to support large business cash flow.</p>
<p>These are significant measures, but are unlikely to materially reduce the shock coming to their economy. This is in part because the stimulus will only partly offset the loss of income from job loss and as confidence’s decline will hit discretionary spending hard. But primarily it is because the US COVID-19 case count continues to rise rapidly, meaning the country is nowhere near a point of stabilisation which it can begin to recover from. Highlighting this, the New York Times today reported that the US now has more confirmed cases than China experienced. Moreover, the global state of affairs also remains dire, with severe cases continuing to increase rapidly across Europe.</p>
<p>The shock to growth coming from abroad is also having a clear impact on Australia and New Zealand. But more pressing is the domestic spread of COVID-19. The current situation for our two nations has been summarised this week by Westpac Group Chief Economist Bill Evans and New Zealand Chief Economist Dominick Stephens. For Australia, further detail on the expected depth of the deterioration in our labour market and economy was also released by Westpac Economics, as was our forecast of the implications for the Federal Government’s fiscal position and government debt.</p>
<p>For our labour market, given the implementation of stricter restrictions on our economy, we now anticipate a rise in the unemployment rate to a peak of 11% by mid-2020, to be sustained through the September quarter. This will come as a result of the loss of over 800k jobs and as the economy contracts by 4.0% over the year to September 2020.  As the economy is restored to a more normal footing in the September and December quarters, activity will bounce and the unemployment rate fall – we believe to 8.8% end-2020 and 8.0% end-2021.</p>
<p>Still, that is a much weaker end point than anticipated prior to COVID-19. Hence, not only will the recession of 2020 hit the Government’s fiscal position, but there will also be a lasting impact. On top of this shock to activity and Government revenue is the cost of stimulus, to steady the economy amid immense uncertainty.</p>
<p>In summary, we anticipate a deterioration in the Federal budget from balance in 2018/19 to a 4.5% of GDP deficit ($90bn) in 2019/20 and a deficit of 8% of GDP ($160bn) come 2020/21. In 2019/20, 2ppts ($40bn) comes as a result of policy stimulus while 2.5ppts ($50bn) is due to the apparent cyclical deterioration. The 2020/21 deficit of 8% of GDP meanwhile includes 3ppts ($60bn) from policy stimulus and 5ppts ($100bn) is due to cyclical deterioration. As a result, the supply of government securities on issue will rise by $250bn to $820bn (40% of GDP) by June 2021.</p>
<p><strong>ELLIOT CLARKE</strong><em> is a <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42750" target="_blank">senior economist at Westpac</a> </em></p>
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A global crisis and stimulus of historic proportions: Elliot Clarke

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<p class="post-title entry-title">EXPERT OBSERVER</p>
<p class="post-title entry-title">After a relief rally, the oil price has dropped back towards new cycle lows as the Coronavirus threatens to lead to a prolonged slump in demand.</p>
<p class="post-title entry-title">A few more buying opportunities looking likely this week. </p>
<div>The price of Brent Crude is now -67.2 per cent below its January highs and we're staring at the lowest price level in 17 years. </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-hvDFQnnUDFc/XoEkUmFcDwI/AAAAAAAA0-g/kJsvvAY_qkA1kCAlrBxC2lwTrPX1OuK-wCNcBGAsYHQ/s640/Crude.jpg" width="640" height="318" data-original-height="798" data-original-width="1600"></div>
<div> </div>
<div>Some analysts think that the oil price could hit $10/barrel over the coming months, which from my perspective would represent 'back up the truck' territory.<br><br><strong>Stage 3 rolled out</strong><br><br>There have been some more promising numbers for New Zealand and Australia on new cases of the virus.</div>
<div> </div>
<div>The short, sharp shutdown looks likely to be the base case strategy to flatten the curve and buy valuable time for medical centres and hospitals.</div>
<div> </div>
<div>Victoria ramped up its response to Stage Three, with spot fines of up to $1,600 for social distancing breaches, while gatherings of more than two are no longer to be allowed (excluding members of the same household).<br><br>Queenslanders now also face $1,300 spot fines for breaches. </div>
<div>
<br><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em>
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Oil prices are at a 17-year low: Pete Wargent

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<p class="post-title entry-title">EXPERT OBSERVER</p>
<p class="post-title entry-title">Globally there are now more than 657,000 cases of the Coronavirus, and more than 30,400 deaths.<br><br></p>
<div class="separator"><img src="https://1.bp.blogspot.com/-HM41pHmKAsY/Xn7wR2xMvLI/AAAAAAAA08U/bG7s8MQo5zkSOQxZJbwM7OzigYI8UDjUQCNcBGAsYHQ/s640/LOG.jpg" width="640" height="450" data-original-height="569" data-original-width="806"></div>
<p class="post-title entry-title"><br>On a global basis new cases continue to climb to 65,000 per day and rising.<br><br></p>
<div class="separator"><img src="https://1.bp.blogspot.com/-R6pcDJYkWbQ/Xn7wokBLYZI/AAAAAAAA08g/VMdwPR0gQL4wgpDxU9IL9VUU8mYRr9uaACNcBGAsYHQ/s640/C2.jpg" width="640" height="344" data-original-height="492" data-original-width="911"></div>
<p class="post-title entry-title"> </p>
<div>With the exponential increase continuing, it's only a matter of time before total global known cases ascend to 1 million and beyond. </div>
<div> </div>
<div>On the positive side of the ledger, China appears to have all but eliminated new cases, and a number of other countries appear to have arrested the virus. </div>
<div> </div>
<div>Germany now has more than 58,000 cases, but its curve does now appear to be flattening.</div>
<div> </div>
<div>Tragically, Italy has seen more than 92,000 cases and 10,000 deaths, but with luck here too the exponential growth may soon be curtailed. </div>
<div> </div>
<div>Spain's figures still look nasty, but the curve is gradually flattening. </div>
<div> </div>
<div>Increasingly the biggest disaster of all looks as though it might be in the US, where cases have exploded to 120,000 with little sign of any promising progress to date.</div>
<p class="post-title entry-title"><strong>Australia shutdown</strong><br><strong><br></strong>How about in Australia?</p>
<div>Today, new known cases increased by 460, taking total known cases to 3,640, with 14 deaths to date (mainly over those aged in their 70s or older). </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-U0VzMI3HDdc/Xn8hj5RCmgI/AAAAAAAA08o/1nU4s_mE34srRpq1lVS9p4-mJr9GaupiwCNcBGAsYHQ/s640/C1.jpg" width="640" height="400" data-original-height="593" data-original-width="946"></div>
<p class="post-title entry-title"> </p>
<div>That does represent an increase from 370 new cases on March 24, which was four days earlier, but at this stage the situation doesn't appear to be deteriorating catastrophically.</div>
<div> </div>
<div>Granted, a lot may change in this regard within a week or two. </div>
<div> </div>
<div>So we're by no means out of the woods yet, but for whatever reasons things do appear to be shaping up somewhat better in Australia than elsewhere.</div>
<p class="post-title entry-title"> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-aAbsD3Y4PHw/Xn8h6M-ybsI/AAAAAAAA08w/OMN88HSHX8U2YCeIm2eZi47L7kOC-lZ7QCNcBGAsYHQ/s640/CV1.jpg" width="640" height="470" data-original-height="656" data-original-width="893"></div>
<p class="post-title entry-title"> </p>
<div>And that's in spite of multiple cruise ship blunders and numerous earlier examples of flagrant disregard for social distancing rules.<br><br>And, indeed, it's in spite of more widespread testing per capita in Australia than in most other countries (Korea, Germany, and Russia have held more tests than we have, but of course their respective populations are far larger than ours, at only 25 million). </div>
<div> </div>
<div>Only a virologist can explain the possible reasons for this; perhaps the climate helps?</div>
<p class="post-title entry-title"><strong>A 9-point plan for re-opening Australia</strong></p>
<div>This is a global pandemic with global ramifications, but ultimately the world won't end, and figuratively speaking it'll be every man for himself when it comes to the critical question of how to kick-start national economies again.</div>
<div> </div>
<div>Here's a 9-point plan for how we might be able to achieve it soonest and most effectively, from the perspective of a perpetually under-qualified blogger, should the daily figures begin to improve over the next fortnight:</div>
<div> </div>
<div><strong>1 - Initiate a shelter-in-place order</strong></div>
<div> </div>
<div>States already have shelter-in-place action plans, so these should be used immediately for all non-essential workers and businesses. </div>
<div> </div>
<div>The Aussie economy has effective already had a coronary, so it's now imperative to get daily new cases of the Coronavirus under control as soon as humanly possible.</div>
<div> </div>
<div>The sooner we can do that, the sooner we can think about re-opening. </div>
<p class="post-title entry-title"><strong>2 - Wage subsidies</strong><br><br>The government has spoken much about its 'stimulus packages the equivalent of 10 per cent of GDP', but the truth is much of this has been in the form of loan facilities and other non-cash items.</p>
<div>Whether by following a similar model to Boris Johnson in the UK or through another approach using the existing transfer system, the government must announce wage subsidies for stood down workers to keep them solvent until such time that the economy can be opened for business again.<br><br>Retail workers are being stood down at an alarming rate, while hospitality and tourism is also being smashed.<br><br>But these workers can return to work soon too, provided that they can be tided over with subsidies.<br><br>Furthermore, with Treasury or RBA funding, banks may also be better served over the medium term to offer interest-only mortgage terms at an interest rate of, say, 2½ per cent to any borrowers in distress, for as long as needed (in addition to the arbitrary 6-month payment holiday terms already being promoted). </div>
<div> </div>
<div>Interest-only mortgage terms with the use of an offset account can be an ideal means for families and other mortgagors to begin building up a safety buffer as get back on their feet from a financial perspective.</div>
<div> </div>
<div>Rental relief measures will presumably also follow, perhaps implemented at the state level. </div>
<div> </div>
<div>These are extraordinary measures, but they're also extraordinary times.<br><br>Shutting down the economy is effectively a national disaster scenario, and it needs to be approached as such. </div>
<p class="post-title entry-title"><strong>3 - Set up a COVID-10 Delivery Unit</strong></p>
<div>Create a dedicated COVID-19 Delivery Unit to purchase, import, manufacture, or find any other ways to both stockpile and circulate facemasks, surgical masks, respiratory equipment, ventilators, gowns, protective gear, and treatment drugs, and prepare as many ICU beds as practicable around the country. </div>
<div> </div>
<div>Even <em>if</em> the virus gets under control in the short term, there could yet be a second, third, and fourth wave, so it's better to go hard here rather than die wondering (for want of a better phrase). </div>
<div> </div>
<div>If there's available funding for testing and research into vaccines, cures, and effective treatments, then implement that too. </div>
<div> </div>
<div><strong>4 - Fund a COVID-19 Testing and Tracing Unit</strong></div>
<div> </div>
<div>Australia must acquire millions of testing kits, and put in place widespread and rigorous testing and tracing regime, with an enforceable action plan for quarantining and treating those with symptoms, and tracing the recent contacts of any known infected persons. </div>
<div> </div>
<div><strong>5 - Government messaging</strong></div>
<div> </div>
<div>Testing and tracing will likely need to continue long after the curve of new cases is flattened, and to this end government messaging should encourage Aussies to keep a daily journal of their movements, and a daily record of folks they may have had close contact with each day (this is a suggestion I read about at the excellent <em>Calculated Risk</em>, and as usual it's a very thoughtful one). </div>
<div> </div>
<div>One of the best-known finance authors once reportedly said that people need to hear simple messages over and over again before they truly sink in...a point with which I concur.</div>
<div> </div>
<div>Therefore, appropriate messaging needs to be hammered home repeatedly on social distancing, the wearing of facemasks, washing hands, sanitising, hygiene, avoiding touching objects unnecessarily, and a raft of other key points. </div>
<div> </div>
<div>The wearing of facemasks has, to my knowledge, normally only been common practice amongst Aussies of Asian origin, but common sense says we should all consider adopting the practice (and maybe gloves too).</div>
<p class="post-title entry-title"><strong>6 - Re-open local economies with few cases</strong></p>
<div>The government faces the nigh on impossible task of balancing the public's health against the human and economic cost of keeping businesses closed.</div>
<div> </div>
<div>Take the example of the capital city of Darwin.</div>
<div> </div>
<div>The Northern Territory was already in recession before the COVID-19 issue surfaced, and now its borders must be closed and its businesses will be hit harder still by any restrictive measures. </div>
<div> </div>
<div>Yet the entire territory has just 15 known cases of the Coronavirus to date, and only one death.</div>
<p class="post-title entry-title"> </p>
<div class="separator"><img src="https://1.bp.blogspot.com/-9gbrFTI3xpE/Xn8mfKh2aeI/AAAAAAAA084/MmkNK0vSRMoQk9SnCFIDGM8SAMP5CISAgCNcBGAsYHQ/s640/C2.jpg" width="640" height="436" data-original-height="662" data-original-width="970"></div>
<div class="separator"> </div>
<div class="separator"> </div>
<div class="separator"> </div>
<div>At the appropriate point the towns and cities (and then states and territories) with the fewest cases will need to see restrictive measures lifted.<br><br>This can soon be an opportunity for Australia's regions to lead the economy forward again, which would make a pleasant change from the heavy reliance on Sydney and Melbourne of the past 7-8 years. </div>
<div> </div>
<div>Virus hotspots may need to remain shuttered for longer, but for towns and cities with the fewest cases the curfews and restrictive measures can be lifted soonest. </div>
<div> </div>
<div><strong>7 - Re-open the Aussie borders, but with mandatory testing</strong></div>
<div> </div>
<div>The capability should exist to introduce and maintain mandatory testing for all entrants into Australia on an ongoing basis. </div>
<div> </div>
<div>It goes without saying that those showing symptoms will need to be quarantined and appropriately treated. </div>
<div> </div>
<div>On the one hand these measures may seem draconian, but on the other hand, what might the alternative look like? </div>
<div> </div>
<div>Many of the cases in Australia apparently originated overseas, so airports and the border are evidently a high risk area. </div>
<div> </div>
<div><strong>8 - Allow businesses to re-open</strong></div>
<div> </div>
<div>As daily new known cases begin to decline, allow businesses and trading to re-open, but with social distancing still to be practised to the extent possible.</div>
<div> </div>
<div>Businesses should be encouraged to allow staff to work from home where practicable, and group meetings discouraged where possible.</div>
<div> </div>
<div>Moreover, an over-arching rule of common sense must apply. </div>
<div> </div>
<div><strong>9 - An ongoing fight</strong></div>
<div> </div>
<div>It's not yet entirely clear whether re-infection is possible, or whether there will be second and third waves of the virus in those locations where cases of the virus have initially been controlled. </div>
<div> </div>
<div>Therefore, we must remain vigilant well beyond the point that the economy is up and humming again.</div>
<div> </div>
<div><strong>A balancing act</strong></div>
<div> </div>
<div>There is, of course, no 'right' way to do these things. </div>
<div> </div>
<div>Every day that companies or self-employed workers are closed for business inflicts more pain, so there are many challenging decisions to be made in real time by those in power to balance the potential risks versus respective health and economic costs. </div>
<div> </div>
<div>Only in hindsight will experts know what could or should have been done with more certainty, but this 9-point plan is what's swirling around my head tonight.</div>
<div> </div>
<div><strong>In short: </strong></div>
<div> </div>
<div>- Issue shelter-in-place orders until the curve of new cases is flattened;</div>
<div> </div>
<div>- Go hard, fast, and early to wage subsidies for workers and cash payments for businesses, with further mortgage and rental relief packages to follow;</div>
<div> </div>
<div>- Build up a war chest of medical supplies, and introduce a nationwide testing, tracing, and quarantining program;</div>
<div> </div>
<div>- Hammer home the 'best practice' messaging, and encourage record-keeping with respect to personal movements and contact with others;</div>
<div> </div>
<div>- As daily new cases begin to decline, re-open locations and economies with the fewest known Coronavirus cases first, and gradually roll this re-opening out nationwide; and </div>
<div> </div>
<div>- Enforce mandatory testing for all entrants to Australia, with quarantine as required.</div>
<p class="post-title entry-title"><strong>PETE WARGENT</strong><em> is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em></p>
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A 9-point plan for re-opening Australia: Pete Wargent

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<p>Commercial landlords have been directed by the PM Scott Morrison to "sit down" with their commercial office, retail and industrial tenants to work out how to get through the coronavirus crisis.</p>
<p>And if commercial landlords don't then they risk missing out payments in the government's third rescue package.</p>
<p>"If you aren't going to engage in that sort of cooperative activity, between bank, between tenants and between landlords, then the sort of support that you might otherwise expect to receive, you will not receive," Mr Morrison said.</p>
<p><span>"We are in unchartered territory, but the goal should be shared and that is a business can reopen on the other side, not weighed down by excessive debts because of rental arrears, a landlord has a tenant so that they can continue into the future to be able to support the investments that they have made and banks have clients," he added.</span></p>
<p><span><span>Finance Minister Mathias Cormann said on Insiders on Sunday that commercial landlords had limited capacity to replace tenants, and he urged a co-operative approach.</span></span></p>
<p>The six month ban on evictions, which has yet to be fully outlined, applies to commercial tenants as well as residential.</p>
<p><span><span>Treasurer Josh Frydenberg said he envisaged rental payments proportionate with rental income in these reduced circumstances would be part of the commercial tenancy </span></span>discussions.</p>
<p class="x_MsoNormal"><span lang="EN-AU">The president of the REIA, Adrian Kelly said while he is very supportive of the Government's efforts, the REIA was disappointed</span> with the simplistic approach of the Prime Minister’s message.</p>
<p class="x_MsoNormal">He suggested the PM's message "ignores the tenancy arrangement and thus raises more questions than it answers."</p>
<p class="x_MsoNormal">“Real estate agents are the middle persons who facilitate the agreement between landlords and tenants and manage it as well as the property.</p>
<p class="x_MsoNormal"><span lang="EN-AU">“There are some 70,000 property managers, principals, real estate agents and representatives across Australia.</span></p>
<p class="x_MsoNormal"><span lang="EN-AU">"</span>Tenants don’t negotiate with landlords.</p>
<p class="x_MsoNormal"><span lang="EN-AU">“Banks have already indicated that they are </span>offering customers the option to defer home loan repayments for up to six months<span lang="EN-AU">.</span></p>
<p class="x_MsoNormalCxSpMiddle">“We need to address the support of agents so that what the Prime Minister wants, in terms of landlords and tenants - finding a solution to get through the crisis, can be achieved.</p>
<p class="x_MsoNormalCxSpMiddle">“Estate agents will work very hard to facilitate the role between landlord and tenant, and to do this they need income.”</p>
<p class="x_MsoNormal"><span lang="EN-AU">“I note that National Cabinet is still to consider details,” concluded Mr Kelly.</span></p>
<p class="x_MsoNormal"><span lang="EN-AU"> </span></p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"> </p>
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