The conflict between Russia and Ukraine will hit Australians in the hip pocket, which could weigh on housing affordability, according to the Real Estate Institute of South Australia (REISA).
REISA Chief Executive Officer, Barry Money said the conflict in Eastern Europe would lead to further upward pressure on oil prices and the cost of living.
“Disposable income for the average South Australian may be reduced as the costs for utilities and goods climb, meaning less cash for additional mortgage repayments and property investment,” Mr Money said.
“South Australians will see a rise in the cost of goods and services to absorb the higher price of fuel.”
Mr Money said higher oil prices would hurt all Australians and the situation appeared to be unavoidable.
“Paying more for fuel is guaranteed throughout this conflict,” he said.
“Australia is a large country with significant transport requirements for the distribution of goods and services between states.
“Unfortunately, the cost of transporting our goods will rise and ultimately be passed onto the consumers.”
Mr Money noted mum and dad investors may choose to reduce their spending during uncertain economic times.
Despite this, the South Australian real estate market continues to power ahead and remains a destination for growth and investment, according to Mr Money.
“The South Australian property market may be buffered for a period of time, but ultimately our growth will be connected to the duration and impact of global crises.”
