Is property plummeting?
Is growth expected?
How is the Government assisting the economy?
According to CoreLogic figures released early June 2020, residential property values fell across 5 of the 8 Australian capital cities in May [1].
Dropping 0.9% in Melbourne to a median of $686,798, 0.4% in Sydney to a median of $885,159 and 0.1% in Brisbane to a median of $508,386.
Values also dropped 0.6% in Perth to $443,669 and 1.6% in Darwin to $393,939, however, they were up in Adelaide, Canberra, and Hobart, which had the largest gain at 0.8%.
What does this mean for homeowners?
According to ABS Chief Economist Bruce Hockman, these results were in line with expectations.
Mr. Hockman states:
"The majority of restrictions relating to COVID-19 came into effect in late March and therefore did not have a noticeable impact on property prices in the March quarter 2020."
What Now For The Market?
Many Australian states continue to record low levels of new COVID-19 cases, indicating the national conversation has transitioned towards the economic recovery ahead.
As an attempt to significantly boost the economy, in early June the Australian Federal Government have introduced a $688 million HomeBuilder package.
The package offers eligible home buyers and renovators $25,000 to help boost the construction industry and stimulate activity in the housing market.
As Australia starts to re-open for business, it's anticipated that sentiment will improve, causing property values to respond accordingly.
To stay up-to-date on all things property investment make sure you join our Property Market Pulse Newsletter here.
Bradley Wearne - General Manager & Head of Research at Meridian Australia
P: (02) 9939 3249
References
[1] CoreLogic
[2] ABS
[3] Sydney Morning Herald - New Home Builder Package
Comments