Hot Property: Biggest headlines from the week that was

By Grace Ormsby

August 07 2020
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With Melbourne entering stage 4 lockdown, it’s been a real eye opener as to just how much of an impact COVID-19 can have on the Australian economy: Here are the biggest stories in property 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.

Stage 4 sees Melbourne real estate closures

Real estate services have been closed for on-site work in metropolitan Melbourne.

Under stage 4 “Stay at Home” restrictions, the Victorian government has revealed “the default is that workplaces in metropolitan Melbourne are closed”.

RBA reveals August cash rate

The Reserve Bank of Australia (RBA) has announced the official cash rate for August, with Melbourne’s stage 4 restrictions weighing heavily on the national economy.

The RBA has held the official cash rate for the fifth straight month at 0.25 per cent, following an out-of-cycle cut in March.

New skills to stick while old habits die hard

RateMyAgent’s CEO, Mark Armstrong, told REB that agents adapted very quickly to the COVID-19 crisis, but there are some age-old practices that will probably be lost in the process.

Good agents [are] realising “this is a great opportunity to really just work with potential buyers who are really looking to buy”.

How low could house prices go?

With unemployment at a 20-year high, immigration becoming non-existent and interest rates having hit the lower bound, what can we expect from house prices? And should we be worried about it?

Looking at “the big picture” and key economic drivers, Nikko Asset Management’s Chris Rands is predicting house prices could fall further than the forecast 5 to 10 per cent that most expect over the short term and into the 10-20 per cent decline range.

Perth sees sales jump 68%

The REIWA has found that volumes were up 68 per cent in July compared with April 2020.

REIWA president Damian Collins said, “While sales activity was quiet during the initial stages of the COVID-19 [lockdown] restrictions, it is great to see levels pick back up to where they were before the pandemic hit.”

“While there are no surprises with the increase in land sales for the month, which saw a 121 per cent increase compared with April, it was pleasing to see that both houses (up 58 per cent) and unit sales (up 51 per cent) also saw a significant increase,” Mr Collins said.

The new hotspot for sea-change investors

According to McGrath Estate Agents, the Thirroul property market is one to watch, with more Sydneysiders looking to move to the hotspot as a result of relaxed working conditions off the back of COVID-19. Thirroul is located south of Sydney, approximately 13 kilometres north of Wollongong.

“The out-of-area migration from Sydney is becoming increasingly popular. Thirroul is only 80kms from the south of Sydney, and many more people are becoming comfortable with this commute to put themselves in a better financial position,” said Vanessa Denison-Pender of McGrath.

Melbourne businesses forced to close, banks to remain open

The Victorian Premier has announced that thousands of businesses will need to shut their doors this week, including financial services, but essential services – including bank branches – will remain open.

Housing approvals fall to eight-year low

The COVID-19 health pandemic has triggered the fourth consecutive decline in dwelling approvals, according to the latest government statistics.

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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