Invest
Prices fall but not the doomsday prophecies many predicted
The COVID-19 pandemic has seen a reduction in housing prices, rental yields and vacancy rates over the June quarter, new research has revealed.
Prices fall but not the doomsday prophecies many predicted
The COVID-19 pandemic has seen a reduction in housing prices, rental yields and vacancy rates over the June quarter, new research has revealed.
Results collated by the Real Estate Institute of Australia (REIA) show the property market has seen falls across almost every capital, although the impact has been much more subdued than leading economists predicted.
Prior to the pandemic, economists were predicting falls of up to 30 per cent.
“While there has been an impact on prices, it is relatively modest and has certainly not been the doomsday prophesies some commentators expected,” REIA president Adrian Kelly said.
House price values decline
House prices across the eight capital cities fell by 2.2 per cent for the June quarter to $770,359.
The results showed that Darwin and Adelaide have remained stable throughout the pandemic, while Melbourne has seen the biggest falls in house prices.
However, Mr Kelly noted: “The impact has not been uniform across Australia, with local market conditions varying, resulting in a range of outcomes.”
Rental market
The rental market has also seen declines over the June quarter as border closures and changing living arrangements impact rental yields.
“Over the quarter, the median rent for three-bedroom houses decreased in all capital cities except for Canberra, where there was a marginal increase, and Sydney where the rent remained stable,” Mr Kelly said.
The decrease in median rents for three-bedroom houses, over the quarter, was 1.6 per cent.
“There is a consistent pattern for June quarter median rents to decline, and the 2020 decline cannot be attributed entirely to the impact of COVID-19,” Mr Kelly said.
The median rent for two-bedroom other dwellings decreased in all capital cities except Darwin, which had a 1.7 per cent increase.
The largest decline was in Melbourne, and at 8.7 per cent it’s the largest decline in the past 10 years.
Weighted average vacancy rates
The weighted average vacancy rate for the eight capital cities decreased to 3.0 per cent during the June quarter, which shows a loosening in the market compared to last quarter.
“A factor contributing to the market stability is the decline in the number of listings for sale,” said Mr Kelly.
RELATED ARTICLES
About the author
About the author
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
