The real estate market, like the rest of Australia, has had a challenging year. The pandemic has ensured plenty of uncertainty, which has made things difficult for buyers and sellers. Often I get asked is this a good time to buy or sell, and to that my answer is always “You need to do what is best for your life and your family.” The timing has to suit your finances and your life plans.
Your decision might be affected by what’s happening in the market, so it’s important to be informed and stay on top of what’s going on. Today I want to look at what the current sentiment and outlook is like for Brisbane, and also touch on the Sydney and Melbourne markets to put it into perspective.
The State of the Brisbane Real Estate Market
Well, there were a lot of negative predictions when Covid first hit. Brisbane has weathered the storm remarkably well though. We may not have seen the capital growth anticipated at the start of the year, but considering the pandemic, the unrest around the world and all the talk of a property recession, Brisbane homeowners certainly have reason to smile.
If we look at the latest instalment of the Corelogic Home Value Index the average value for all dwellings in Brisbane fell just .35% in the last quarter. And if we compare them this time last year to where they’re at now, Brisbane property prices are up 4.41%.
While this shows remarkable resilience, it’s important to remember that not all properties are created equal. The market is fragmented into different sectors, some of which will underperform while others perform well.
Some sectors feeling the strain a bit include properties at the high-end of the market, apartments in tower blocks and homes in new estates where young families may have overextended themselves. On the flip side though, according to propertyupdate.com.au, freestanding homes within 5-7 kilometres of the CBD have recorded very strong gains.
Essentially though, Brisbane has been carried by its solid economic fundamentals and renowned liveability, which are fuelling high demand for properties. Here at The Henry Wong Team® our listings over the last few months attracted huge interest, with many group inspecting and many enquiries coming through over social media, email and phone. If your property is in a desirable area, it will sell. So I’d advise buyers not to be expecting any post-pandemic bargains in Brisbane!
The Sydney Property Market
On paper Sydney hasn’t fared quite as well as Brisbane during the tricky pandemic period. This might be due to the market there finishing very strong at the end of 2019, so any slowing down would be more obvious. According to Corelogic Index, Sydney home values fell 2.1% in the last quarter, and .46% in the last month. But if we compare them to last year, values are up by 9.84%.
This shows a resilience not unlike Brisbane’s, and as restrictions ease and more action comes back into the market Sydney is likely to bounce back. Remember this is a city whose property market has gone from strength to strength over the years, with many homes doubling in value every ten years. So with sales activity up by around 40% since the pandemic induced low in April, hopefully there’ll be a turnaround in those falling values.
The Melbourne Real Estate Market
Similar to Sydney, Melbourne markets were having a good time of things before Covid hit. Unfortunately for Melbournite’s and property owners there, the city has been hit hard by the pandemic and are currently under Stage 4 restrictions. Prolonged and restrictive lockdowns mean Melbourne prices have declined 4.6% during the Covid time. August saw a decrease of 1.2% in home values in a month, and the number of actual home sales has fallen considerably.
This is understandable given that people are in lockdown so very few sellers are listing their properties. We shall wait and see what happens when lockdown lifts, but it’s likely that real estate activity levels will return fairly quickly. Melbourne is one of the developed world’s 10 fastest growing cities and one of the most liveable in the world. This will stand it in good stead for a post-pandemic bounce back.
If you’d like to chat about the real estate market in Brisbane or around Australia, please get in touch. Myself and the rest of The Henry Wong Team® are here to help. Have a great day and stay safe out there.