Hot Property: Biggest headlines from the week 1 - August 2020

By Grace Ormsby

August 21 2020
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Spring selling season could look very different this year: Here are the biggest property stories from this week.

Welcome to nestegg’s weekly round-up of the bricks-and-mortar stories that we think will be most relevant to you, whether as a first-home buyer, a seasoned investor or anyone in between!

To compile this list, not only are we taking a look at the week’s most-read stories and the news that matters, but we are also curating it to include stories from our sister platforms that could have an impact on your buying, selling or investment journey, no matter where you find yourself on the property ladder.

Update on Melbourne’s housing market

Herron Todd White’s latest Month in Review has provided insight into how the city is faring.

“While demand has remained fairly steady for properties in some areas, rental property markets have felt the pinch in the past few months. Latest statistics show that Melbourne housing values have dropped 1.1 per cent, the numbers of owner-occupiers had increased in demand by 0.5 per cent and demand from investors has dropped by 0.3 per cent.”

Flagging that not all suburbs are created equal, the Herron Todd White research broke down Melbourne’s hotspot areas to understand which suburbs are faring better than others.

Upsizers win big despite property market slump

Speaking on a recent episode of the nestegg podcast, Domain’s senior research analyst, Dr Nicola Powell, reflected on some of the winners and losers in the property market of today, paying particular attention to upsizers and first home buyers as well placed to capitalise on market trends.

According to the analyst, it’s the upper end of the market that’s currently experiencing more substantial price falls than other areas in the broader property market.

South-east Queensland becomes state hotspot

South-east Queensland has recorded its strongest monthly sales in more than five years.

According to Oliver Hume national head of research George Bougias, the south-east Queensland land market recorded 1,110 sales in June after dropping to just 273 sales in April. Further, the total number of sales for the June quarter came in at 1,910, up from 1,518 in the March quarter.

The results show that the federal government’s HomeBuilder scheme and state government grants are fuelling buyer demand: “There are still plenty of buyers with stable incomes who are more than happy to take advantage of the numerous grants and incentives available.”

‘You’re not buying into a city, you’re buying into a suburb’

REIQ CEO Antonia Mercorella has issued a statement to property watchers following research being released that showed Queensland’s rental market continues to face tight conditions. Such figures only reinforce the necessity for current and prospective buyers to consider the rental data, including vacancy rates, of the suburb they’re interested in.

“Our rental market has changed from its historical role as a transitional housing sector for people moving into home ownership or social housing to a long-term housing sector for a significant number of Queensland households.”

Will stimulus push the price of property higher?

Will state and federal stimulus artificially prop up the property market? Ultimately, it could, but its impact will likely be confined to one certain type of home.

RBA backs move to axe stamp duty

On Friday (14 August), Philip Lowe, governor of the Reserve Bank of Australia, told the House of Representatives standing committee on economics that he would support the scrapping of stamp duty as part of a broader tax reform agenda to support the economic recovery effort.

“[Stamp duty] is a tax on mobility, people moving location… If we’re looking for an economy that’s dynamic and vibrant, we want to remove taxes on mobility.”

FHBs helping ‘pick up the slack’ amid COVID drag

First home buyers have reserved approximately 65 per cent (6,500) of places available in the second phase of the FHLDS since the second round commenced in July, Assistant Treasurer Michael Sukkar has said.

He called it “a reflection of the market’s resilience to the COVID-19 crisis”.

How to win the battle of control with the banks

Of around 25 million Australians, 2.2 million own one investment property, 460,000 own two, and around 19,000 own more than six. From this, I figure that the top 19,000 investors own many more than six properties each. So, what are these people doing that all the others aren’t? Cam McLellan asks.

AFL legend returns to roots with industry debut

Jason Akermanis, who some may know better as Brisbane Lions footballer “Aker”, has been announced as joining the Ray White Ascot team.

The new role also marks a return to Queensland for the Brownlow medalist and 248-game AFL veteran, who hasn’t lived in the Sunshine State for more than a decade.

Stage 4 restrictions can’t slow down St Kilda sales

A St Kilda real estate agent has recorded a mammoth $13 million in sales in just seven days, despite stage 4 lockdowns wreaking havoc across much of Melbourne City.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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