With the economy weakening this month, and Treasurer Frydenberg forecasting an increase in unemployment and continued economic slowdown, house prices have remained resilient for the most part.
Over the three months to August, Core Logic reports that Sydney, Melbourne and Brisbane have had small value dips, but Adelaide and Canberra, as well as many regional centres, have seen values increase.
While the property market is not immune to the Covid-19 economic fallout, sellers are returning. According to Core Logic, most plan on selling for “lifestyle reasons rather than economic hardship”. It’s expected that buyer confidence will increase over the coming months and that well-located homes and investment properties will attract healthy competition at auction.
Following an announcement this month that the NSW and ACT Governments are fast-tracking critical infrastructure in an endeavour to create more affordable housing, the Federal Government is being urged to do the same.
With 781 new homes and 260 new homes slated for construction in NSW and the ACT respectively, an opportunity exists for both first-home buyers and investors looking to enter the market.
Download and read the full Market Essentials – September 2020 Report.