The property market continues to flourish through August despite the Australian economy still in its rebuilding phase due to ongoing COVID-19 lockdowns. There has however, been a shift in property listings with market updates showing a dip in the quantity directly affecting a spike in housing prices.
This trend shows no signs of slowing down, with housing values predicted to continue rising with the low supply in the market. We have narrowed down this property market trend in major cities of Queensland, Victoria and New South Wales, so you can note the challenges to come.
Property market update by State
Sydney, NSW – Despite the extensive lockdown Sydney has been experiencing since the end of June, the property market is producing some better results than expected with an average clearance rate of 82 per cent. House values have continued to increase astronomically by more than 2053 per cent in the last six months (the fastest six month increase since 1988). And is expected continued growth in the coming months, with an increasing in demand from buyers.
Median House Price: $935,000
Auction Clearance Rates: 82%
Melbourne, VIC – Even with constant shifting in and out of lockdowns, Melbourne house values have risen 5.3 per cent higher than the peak in March 2020, prior to the COVID-19 outbreak. Prices have continued to rise into August, increasing by 1.8 per cent since June. Prices of units in Melbourne have also seen a large increase in values, reaching a record high with $572,793 as the median price.
Median House Price: $710,000
Auction Clearance Rates: 72%
Brisbane, QLD – The Brisbane property market remains stable, in comparison to Melbourne and Sydney. With record low interest rates it shows a trend in buyers taking advantage of “cheaper than ever” finance and in return seeing an increasing demand for large family homes in premium locations. Brisbane house prices increased 0.5 per cent over the last week and 18 per cent in the last year.
Median House Price: $560,000
Auction Clearance Rates: 77%
This month has been met with a large demand for properties, however the market is short of supply. While the rental market is less sought after in the past few months, it is still gradually growing as we continue to experience the highest rental growth period since 2010. The latest numbers show that rental rates have grown 6.6 per cent higher in the previous year
Lastly, as the nation sweeps in and out of lockdowns, the Royal bank of Australia remain certain with its statement that ‘there will be sharp rebound after lockdown ends’. The RBA is expecting the disruption to Australia’s economic situation to be temporary, commenting that economic conditions bounce back quickly once outbreaks are contained, and restrictions are lifted. This gives us something to look forward to post-lockdown.
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