FE AT URES
NE WS ANALYSIS
SIX MONTHS IN: HOW ARE HOUSE PRICES FARING?
Forecasts and predictions that the pandemic is going to push real estate prices off a cliff have not yet eventuated – and many experts believe that suggestions of huge property price falls are overblown. What does the data say?
six months into the COVID-19 pandemic, and so far Australian property markets have weathered the economic storm quite well. The data shows that median property values are starting to slowly trend down, but we’re nowhere near experiencing the 10%, 20% or even 30% drops that some industry experts predicted. But are those price falls still to come? The most recent data suggests that, if we continue on the current course, Australian real estate prices are set to continue down a path of resilience. WE’RE
The RPM Real Estate Group’s latest quarterly Residential Market Review suggests that government stimulus packages and grants,
particularly the HomeBuilder incentive introduced in early June (which offered $25,000 to anyone buying a new home), may
“The way that people work will likely change significantly post-pandemic, and this will have an impact on less traditional property investment locations” Peter Koulizos, chairman, Property Investment Professionals of Australia
have thrown the property and construction industry a lifeline – and could be responsible for putting a floor under the market going forward. In Melbourne, more than 50% of the quarter’s 3,786 total lot sales across Greater Melbourne and Geelong occurred in June, of which 69% were titled or near-titled lots, demonstrating the grant’s effectiveness at bringing forward buyer demand for eligible lots. The June figures topped out at 2,043 lots, reflecting the strongest monthly sales result since November 2017 and contrasting
Top 10 capital city suburbs in Australia: Post-GFC capital growth Suburb
LGA 2016
State
% change Dec 2008–Dec 2011
Median value Dec 2011
Rosebery
Palmerston
NT
39.3%
$418,735
Unincorporated ACT
ACT
34.9%
$490,813
Canterbury-Bankstown
NSW
32.6%
$525,267
Abbotsford
Yarra
Vic
32.0%
$659,434
Cabramatta
Fairfield
NSW
31.4%
$312,495
Eastlakes
Sydney
NSW
31.3%
$415,779
Wiley Park
Canterbury-Bankstown
NSW
31.3%
$292,781
Sydney
NSW
31.0%
$492,296
Boroondara
Vic
30.9%
$898,797
Fairfield
NSW
30.5%
$387,059
Forde Belmore
Chippendale Kew East Canley Vale
Source: CoreLogic
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