The Australian property market sees gradual improvement: PRD

The Australian property market has managed to hold its value, according to PRD Real Estate’s recent market research report.

Despite the ill-effects of the COVID-19 shutdown, PRD reveals on average, median house prices grew in capital city, metropolitan and regional markets in the 12 months to the first half of 2020.

Capital city markets grew by 1.0 per cent on average, led by Melbourne, Sydney and Hobart. Regional markets performed best; up by 3.4 per cent.

PRD Real Estate Chief Economist, Diaswati Mardiasmo believes the market has shown great resilience.

“Whilst COVID-19 hit us swiftly this year and threw Australian economy and property markets into turmoil, things settled down within the property market quicker than initially thought”, she commented.

Australia has created a market balance thanks to the unprecedented release of multiple fiscal and monetary policy assistance, the report reveals.

Consumer confidence has returned to pre-COVID-19 levels with confidence up by

23.9 per cent in June 2020 after a plummet in April.

“Uncertainty about the health situation and the future strength of the economy is making many households and businesses cautious. However, despite the curveballs the property market has been remarkably resilient, and demand has been stronger than many people anticipated”, Dr Mardiasmo said.

Notably, new home sales increased by 77.6 per cent at the end of this financial year, from a record low result in May.

The HomeBuilder scheme is balancing the downturn in residential construction due to COVID-19 with upgraders accounting for 42 per cent of loans in June.

“The key going forward will be increasing levels of employment, public and private investment and consumer confidence based on the ongoing impact of COVID-19.” Dr Mardiasmo said.

“There is no doubt we are seeing signs of gradual improvement”.