Article published 24 November 2020
Earlier in 2020, when we were coming to grips with a 1-in-100-year pandemic, there were plenty of dire predictions about falling property values. But Australia’s housing market has shown tremendous resilience, and as we head towards 2021, the market is in great shape.
Home values nationally rise 3.9%
The first few months of 2020 saw property values fall in some of our state capitals. That’s understandable as lockdowns ruled out ‘open home’ inspections, and the real estate industry had to quickly pivot to virtual inspections and online auctions.
But the soft patch was short-lived, and the past 12 months have seen home values nationally rise by 3.9%. The strongest results were achieved in Canberra (up 6.8%), Hobart (6.5%), and Sydney (6.1%). However, even in Melbourne, where strict second-wave lockdowns applied, home values are still ahead by 0.7%, and this is expected to climb as the city celebrates a return to more normal conditions1.
Home value gains – 12 months to November 2020
12-month price gains
Median home value
Combined regional areas
Source: CoreLogic Hedonic Home Value Index as at 1 November 2020
Regional Australia – the big winner
The big surprise of the COVID crisis has been the impact on regional home values. According to CoreLogic, regional housing markets have outperformed our state capitals, with home values rising 4.8% over the past 12 months compared to 3.7% across the big cities.
Since March alone, regional values have soared 1.7%, and it’s all thanks to the newfound popularity of working from home, more affordable price points, lower population densities and lifestyle appeal.