Australia’s property market appears to have proven itself again with Australian home values, including houses and apartments, ending 3 per cent higher since September last year.
The findings which were recently released by CoreLogic Data are set to provide new levels of confidence in the market, despite the country being hit by its first recession in 2020 in nearly three decades.
GlobalX Group Chief Executive Officer Peter Maloney said the legal and conveyancing professions should be positioning themselves for a strong start to 2021.
“There is no doubt that legal and conveyancing firms were impacted during COVID by the property market’s volatility, but they have shown remarkable resilience to come out stronger than ever on the other side,” Mr Maloney said.
“For those firms who spent time reassessing and realigning their business strategies and operating models to embrace digital transformation – whilst also keeping their employees and customers front of mind, have never been better positioned to capitalise on the property market’s momentum that we’re currently seeing,” Mr Maloney added.
CoreLogic also reported that house values lifted by 0.9 per cent through January, eclipsing its previous high recorded in September 2017. The index is now 1 per cent higher than its pre-coronavirus level.
The biggest increases in values were recorded in Darwin up by 2.3 per cent, followed by Hobart and Perth which were up by both 1.6 per cent.
Dwelling values across Sydney increased by 0.7 per cent, driven by a 0.7 per cent increase in house
values. Whilst in Melbourne, dwelling values increased by 1 per cent with house values increasing by 0.6 per cent.
“We’re also seeing regional areas continue to out-perform the capital cities, especially in NSW and Victoria. The events of COVID-have reshaped the pattern of demand for housing across the country – with working from home being the ‘new normal,’ resulting in an upward trend with regional home buyers. Working from home has eliminated the need to be so closely located to CBD locations and also provides better housing affordability”, Mr. Maloney said.
Values across regional NSW and Victoria both increased in January, lifting by 1.5 per and 1.6 per cent consecutively.
Mr. Maloney also added that whilst house values are living alongside low advertised supply levels, we will continue to see upwards pressure on housing prices. It is clear the strong housing demand we are seeing are from Australians taking advantage of low interest rates and HomeBuilder grants.
The latest Domain House Price Report reveals the national median house prices rose 4.1 per cent to $852,940 in the December quarter – making it the steepest quarterly jump we’ve seen in four years. With the increase we are seeing in buyer activity at the start of 2021, it marks a rapid recovery from losses suffered during the pandemic, Mr Maloney said.
Sources: CoreLogic December Home Value Indices Dec 2020 and Domain House Price Report Dec 2020