Invest
Weak population growth tipped to burden house prices
With COVID-19 restricting immigration currently and potentially in the future, it is likely to create a strong headwind for property prices, an industry expert has warned.

Weak population growth tipped to burden house prices
With COVID-19 restricting immigration currently and potentially in the future, it is likely to create a strong headwind for property prices, an industry expert has warned.

Property group Domain has released residential property price figures for the three months to 31 March 2020, reporting that detached housing values increased nationwide over the period.
However, the rebound is set to be short-lived, with analysts now expecting housing market activity to fall in response to the economic fallout from the COVID-19 crisis.
According to Domain economist Trent Wiltshire, subdued population growth, particularly net over search migration, would add to housing market headwinds.
“Lower immigration means reduced demand for property, which will put downward pressure on prices,” he said.
“Lower population growth will be one of a number of factors that will contribute to property price falls in 2020.
The economist also highlighted that it is not just immigration that is causing prices to fall, with various domestic headwinds likely to impact values.
“Other factors are rising unemployment and concerns about job security, expectations of price falling, larger households due to people wanting to save money, some forced sales, and restrictions on transacting real estate (such as the ban on auctions and open for inspections).”
“Property sales are likely to decline by even more than prices.”
Sydney recorded the sharpest increase over the March quarter (2.6 per cent), followed by Hobart (2.2 per cent), Melbourne (2 per cent), Darwin (1.2 per cent), Brisbane (0.6 per cent) and Canberra (0.3 per cent).
House prices remained stable in Adelaide and Perth, but the capitals recorded unit price gains of 4.2 per cent and 1.6 per cent, respectively.
Unit prices also rose in Sydney (2.7 per cent), were stable in Hobart, and fell in Darwin (8.2 per cent), Canberra (5.2 per cent), Brisbane (4.2 per cent) and Melbourne (0.4 per cent).
The March quarter result was reflective of a broader rebound in the housing market, which commenced in mid-2019 off the back of interest rate reductions and the easing of regulatory restrictions.
About the author

About the author


Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more