All indications are that Australia’s property market is set for recovery.
Leading property data, information, analytics and services provider, CoreLogic, has just released its October property value index, showing that house prices across Australia have risen overall for the first time since the start of COVID-19.
CoreLogic’s Head of Australian Research, Eliza Owen has described these property figures as “quite remarkable”.
Every capital city house on average is still worth more than it what it was 12 months ago, according to the research.
Even after the greatest health crisis the world has seen in 100 years.
Even after the greatest economic crisis the world has EVER seen.
Head of Research for CoreLogic Asia Pacific, Tim Lawless, says the rise in capital city housing values over the month was entirely attributable to a 0.4% lift in house values, which offset the 0.2% fall in unit values.
“Low levels of investment activity, relatively high supply of unit stock in inner-cities and international border closures are key factors that imply units will under-perform relative to houses over the medium term,” Lawless says.
“We aren’t seeing any signs of a rise in distressed listings or stock starting to pile up in the market. In fact, the opposite seems to be true, where new listings are being absorbed by the market faster than the rate at which they are being added.”
By the numbers
The numbers paint a picture of resilience for Australia’s housing market:
- Nationwide dwellings rose 0.4% in October (0.4% increase for houses versus a 0.2% fall for units)
- Melbourne, the city most affected by COVID-19, fell 0.2% for the month across all dwellings
- In the past 3 months as the worst performing capital city in Australia, Melbourne has fallen just 2.2%
- Stock levels in Melbourne have lifted again and even surpassed Sydney, with restrictions lifted and private home inspections once again allowing property listings to surge, clearance rates have lifted and buyer activity is recovering.
- Sydney rose 0.1% in September (0.5% increase in houses versus a 0.5% decline in units).
- Sydney has consistently enjoyed 70%-80%+ clearance rates on strong listing volumes over the last 6 weeks, suggesting that Sydney has well and truly bottomed out.
- Brisbane has gone back to back to enjoy another 0.5% increase for the month (0.6% increase in houses versus 0.1% fall for units)
Consumer confidence
OpenCorp’s Cam McLellan says now is a unique time to be investing in property.
“The lowest home loan interest rates in history, combined with unprecedented fiscal support from the Federal Government … all banks revising their property forecasts up for the next three years, and consumer confidence back to pre-COVID 19 levels,” he says.
“Are you on the fence, waiting for property prices to fall for that ‘bargain’? Sorry but it’s not going to happen.”
Are you ready to take advantage of some amazing buying opportunities before the upswing occurs?
Cam says OpenCorp clients have been buying up during COVID-19, and making money from the beginning of the crisis.
“They know the doomsdayers, who have now strangely disappeared, were trying to sell hype and fear, not information. The half-truths are gone.”
If you’re in a strong financial position to invest now, now is the time to place yourself for 2021 and beyond.
A copy of the CoreLogic media release can be found here.
