Auctions go digital during lockdown, and property prices in suburbs across all capital cities soar as we enter August.
It seems that not even the economic uncertainty of continued lockdown events has dampened the countries appetite for real estate.
In a survey conducted by Finder.com, close to one in seven Australians are reported to be considering a property purchase within the next six months. Approximately 7 per cent of those were looking to buy property as an investment.
Sales of luxury inner-city and CBD apartments are also on the rise, with buyers spending big money on prestige property with state of the art security and top of the line fixtures, finishes and amenities. Property traditionally sold to overseas buyers is now being marketed almost exclusively to domestic buyers.
Meanwhile, rents continue to increase at the greatest rate in over twelve years. CoreLogic’s national rent index has reported that national rents have recorded their highest annual growth since 2009, surging on average 6.6 per cent.
In the commercial sector, retail vacancies are on the rise. The fallout from the pandemic has also seen retail property values decrease in Sydney and Melbourne CBDs.
- Suburb records continue to tumble despite lockdown, with house listings in Erskineville, Blacktown, Rhodes and Liverpool increasing in July. Median prices in some suburbs across Sydney have soared to $3m.
- The NAB property forecast report predicts house prices will increase by 21.6 per cent this year before decelerating to 3.1 per cent growth in 2022.
- The inner-city is losing its shine, according to the University of Technology Sydney. New research has found that Sydneysiders were now far less prepared to pay extra to live closer to the CBD. Prospective buyers are looking for quality of life as they telecommute and work in hubs closer to home. Sydney’s western suburbs Marsden Park, Parramatta and Bella Vista, top the list.
- CoreLogic reports that suburbs in the Northern Beaches Council from Manly to Palm Beach lead the property boom in July. Over 98.4 per cent of all sales recorded in the area reported a median profit of $856,300. Property in the Woollahra and Mosman Council areas also recorded record profits. At the other end of the scale, properties in the Botany Bay and Parramatta Councils suffered a 15.6 per cent median loss.
- According to Domain’s Chief of Research and Economics, Nicola Powell, ‘upgraders’, buyers wanting more space at home, are the driving force behind the Melbourne property market increases. Buyers are looking for homes and apartments that suit work from home arrangements, particularly where there are multi-family members at home.
- NAB Chief Economist Alan Oster is predicting that home values in Melbourne will continue to surge this year despite outbreaks of Covid-19 and the continued threat of lockdown. Prices are forecast to increase by 17.6 per cent by the end of 2021, followed by an additional 3.5 per cent in 2022.
- Domain reports that for the best buys in Melbourne this month, look to South Yarra, Brighton East, Hughesdale and Point Lonsdale.
- Rising rents and low rental stock volumes in some of Melbourne’s outer suburbs have forced tenants to move further out of the city. As a result, rental increases of up to 11.1 per cent are common in outer suburbs, with increases of 27.4 per cent typical closer to the CBD.
- Realestate.com reports that Brisbane homeowners are selling to cash in on the property boom. With the city now hosting the 2032 Olympic Games, suburbs in the heart of the games precinct are expected to attract top dollar. Kangaroo Point and Woolloongabba are suburbs to watch in Brisbane, with Burleigh Heads, Palm Beach and Currumbin on the Gold Coast also on the radar.
- According to Domain, for Brisbane’s best property buys this month look to Fortitude Valley, Waterford, Daisy Hill and Bulimba.
- Domain reports that Perth rents are now at a six-year high and have recorded the strongest annual growth of all Australian Capital cities. With an average 21.6 per cent yearly increase reported, some tenants are looking to move towards homeownership over renting.
- Median house prices in Perth are increasing, with the Real Estate Institute of WA data revealing the southern suburb of Salter Point’s median is up 44.7 per cent. Ascot has also shown similar hikes in median house prices with a 42.1 per cent increase. Other suburbs showing impressive growth include Bicton, Claremont and Medina.
- Large scale development continues throughout the country’s capital, with several proposed developments announced in the last few weeks. A mixed-use development on the southern edge of the Gungahlin Town Centre will host 329 residential dwellings and 500 square meters of commercial space. In addition, a three-tower, 24 storey development is now being considered in Woden, and a 106 residential unit commercial development is slated for Kingston.
- CoreLogic reports that there have been 60 record-breaking suburb sales so far this year. These include million-dollar sales in Holder, Chisholm, Weston, Crace and Casey.
- From 1 July 2021, all buyers signing off-the-plan contracts for property purchases up to $500,000 will not have to pay stamp duty. ACT Chief Minister Andrew Barr hopes the move will increase the supply of affordable housing across Canberra.
- Historically not reliant on auctions as a sales vehicle, Adelaide’s auction clearance rate remains one of the highest in the country despite easing over the last month. Auctions are now one of the best ways to sell property across the state, according to REISA.
- Property reselling is becoming popular in Adelaide as homeowners work to cash in on the increasing property prices. Realestate.com reports that some inner-city homes are being resold within six to nine months of an initial sale for profits over $350,000.
- As snap lockdowns continue in South Australia, ‘lifestyle’ suburbs like West Lakes, Semaphore Beach and Tennyson are growing in popularity for prospective buyers.
- The Australian Bureau of Statistics reports that Northern Territory new home approvals have increased by 64 per cent. This is the highest they have been in five years and prompted by the federal and NT Covid-19 building stimulus schemes.
- CoreLogic reports that homes values continue to achieve record growth, with homes in Darwin up 20 per cent in the past year. Best buy areas remain Stuart Park, Fannie Bay and Darwin City.
For the 2 page download, click here…