On the up and up
This month Core Logic reports that February 2021 contained the biggest rise in Australian property values since August 2003, with all capitals and regional areas in positive value. According to Core Logic’s research director, Tim Lawless, this is the first time a ‘synchronised’ increase has occurred for over a decade:
“The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fueled buyer demand.”
Domain reports that the northern beaches property market has snapped back to its rising popularity pre December lockdown levels – and then some. At a more nuanced level, Core Logic notes that while the value of detached housing is increasing by greater amounts than unit values, and attributes the growing discrepancy to supply and demand issues including reduced investor activity, reduced international migration and low interest rates. Other commentators such as John McGrath are more interested in people’s changing attitudes to more expensive and prestige detached properties.
In an op-ed piece for the Real Estate Conversation, he notes that since the pandemic, increased awareness of the importance of having a home with outdoor space, and even resort-style features that can improve home leisure. This particularly includes things like pools, tennis courts, waterfront positions and even boating facilities. Aside from this, the lockdowns showed the importance of having suitable work from home spaces as well as for schooling, and for vacationing at home.