Invest
Housing activity plummets as prices stabilise
The impact of COVID-19 has seen a sharp drop in housing activity, although it has not translated into a drop in value, new research has revealed.

Housing activity plummets as prices stabilise
The impact of COVID-19 has seen a sharp drop in housing activity, although it has not translated into a drop in value, new research has revealed.

CoreLogic’s latest data showed that weak consumer sentiment did not have an impact on price, with most regions recording a rise in home values through April.
However, the national monthly pace of growth more than halved, dropping from 0.7 per cent in March to 0.3 percent. The April result was the smallest month-on-month movement since June last year, when the national index was down 0.2 per cent.
“Although housing values were generally slightly positive over the month, the trend has clearly weakened since mid-to-late March, when social distancing policies were implemented and consumer sentiment started to plummet,” CoreLogic’s head of research, Tim Lawless, said.
The capital city markets generally showed a weaker performance relative to the regional markets, with the combined capital cities index up 0.2 per cent in April compared with a 0.5 per cent rise across the combined regional markets.
The sharpest reversal in growth conditions can be seen in Melbourne, where values nudged into negative territory through April, down 0.3 per cent. Sydney values remained positive, rising 0.4 per cent over the month. To provide some context, the six months prior to March saw both cities averaging a monthly growth rate around 1.7 per cent.
According to Mr Lawless, Australia’s largest cities have a higher level of downside risk as COVID-19 sees border closes.
“Sydney and Melbourne arguably show a higher risk profile relative to other markets due to their large exposure to overseas migration as a source of housing demand, along with greater exposure to the downturn in foreign students, stretched housing affordability and already low rental yields that are likely to reduce further on the back of rising vacancy rates and lower rents.”
Hobart was the only other major region to record a decline in home values over the month, down 0.1 per cent.
Mr Lawless explained the Hobart drop was due to it having the most exposure to industries that are impacted by COVID-19 – “12.7 per cent of the workforce employed within accommodation and food services, and arts and recreation services sectors”.
About the author

About the author


Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more