Lower interest rates and loosening lending conditions for banks in the face of local and global market uncertainties, including major federal elections, ever-changing economic climate, global instability and volatility, and a general lack of business confidence, 2019 proved to be an interesting year for Australia’s property sector.

The RBA agrees that rates are about right, but, if necessary, they reserve the right to further ease them.

An environment of low-for-longer interest rates means real assets, and in particular real estate, will remain highly sought after as investors chase yields.

In particular, Australia will continue to attract foreign capital backed by a cheap Australian dollar, positive debt yield spreads allowing positive leverage funding and the lagging effect of capital rate compression due to some scepticism of further yield runs as we hit all-time yield lows/highs.