Property market strength defies negative forecasts:
Australia’s property market strength has dramatically defied the COVID-19 downturn.
After a strong start to the year, with all capital cities seeing solid capital growth throughout the first quarter, our housing market has defied negative forecasts by displaying further growth in April. The data from April is showing that property values continued to rise slightly in our capital cities, and even stronger performance was recorded in our regional markets.
This news surprised critics, particularly those who had earlier forecast a negative impact would be clearly felt in this same period of time. This resilience has proven that despite the weakened economic conditions and the broader COVID-19 related disruptions, the strength of our property market can’t be underestimated.
Buyer interest surges 50% as auctions resume.
A massive spike in online activity by property buyers has also been seen as a very positive sign of market confidence. According to the latest data released this month, buyers viewing property listings online is up a remarkable 50 per cent on this time last year. These levels of activity clearly illustrate that the buyers are out there, and they are preparing to enter the market. This has given a new perspective on the potential for a strong market rebound as restrictions lift around open homes and onsite property auctions.
NSW was the first state to lift restrictions around public auctions, and Queensland is expected to follow very soon. This news has injected another wave of confidence across the national property market, suggesting that the impact on the real estate industry by COVID-19 now appears to be shorter and potentially far less harmful than first feared.
Regional markets positioned to shine.
It appears our biggest regional cities could stand out as the clear winners for investor popularity post-COVID-19. A growing awareness around the strengths of these emerging economies, and the attraction to escape our urban jungles could see these lifestyle rich markets become our hottest property markets in 2021. Many of these locations are fast becoming the most researched postcodes by buyers, and this activity is only expected to increase over the coming months. Particularly as real estate restrictions lift, allowing millions of baby boomers in Sydney and Melbourne to sell their family homes and downsize to these popular regions.