Buyers are flooding the Australian property market again to snap up bargains after house prices slumped during the Coronavirus crisis. Hopefully Sydney and Melbourne won’t see this kind of house price fall, but it looks like housing prices will deteriorate significantly by the end of 2018. The rental markets in Sydney, Melbourne and Brisbane are showing strong downward movements. Rental prices in Melbourne fell 8 per cent in the first half of 2018, while house prices fell 9.2 per cent.
Will the current period of uncertainty have long-term implications and bring about structural changes in the Australian property market? Will it bring about a structural change in the “Australian property markets” and cause a significant fall in house prices?
The data currently show that investor confidence in capital cities is fluctuating, with figures for the first three months of the year lower than expected, and the decline in the trend points to healthy rental demand. Sydney and Melbourne have healthy vacancy rates, but the focus is rated “healthy” by focus.
The Australian property market may be recovering as low interest rates will attract buyers, but let’s look at property trends in Sydney and Melbourne over the next few months to see if you can buy it or not. If you have cash – ready before the market turns – you will find it easy to buy prime Australian properties at a bargain price. We are talking about first-class properties that we can target with money in our pockets and less competition.
This chart suggests that the top 10 per cent of Sydney and Melbourne properties will be highly volatile over the next few months, and are the first to show the direction of price change.
This trend is much more positive when one compares developments in the real estate sector with developments in the economy in general. Australian property market, but it is unlikely to fall in the long term due to a lack of demand for office space in Sydney and Melbourne. Although it is too early to assess the overall impact of the global financial crisis on the office market, we expect tenants to seek greater lease flexibility when reevaluating office space – space requirements, occupancy and rental growth.
Individuals can also seek advice from the Real Estate Institute of Australia and the Australian Property Council (APC). Emma joined Momentum Media in 2015 and has been responsible for some of the biggest stories in Corporate Australia, including the launch of Momentum Media Australia’s first digital media platform in Sydney and Melbourne.
The real estate market has three other factors influencing its strong performance. COVID 19 will accelerate the adaptability of commercial real estate and allow the industry to reinvent and rethink its place in its evolving environment. Estate agents are more savvy in the market and use all kinds of technologies to do business more efficiently and effectively than ever before. Managing director and co-founder of Momentum Media Australia and the Australian Property Council (APC).
With prices expected to fall by an average of 10 per cent nationwide, Aird suspects Sydney and Melbourne will be the cities with a 10-11 per cent fall in prices. Shane Oliver believes Sydney’s unemployment could soar, triggering a property crash in the next few years, “he told AMP. Those who have bought in the past two years are likely to face negative equity soon. That equity would cushion homeowners in Sydney or Melbourne who have held on to their property for many years against the price rises of the past decade.
It is no surprise that Melbourne’s inner city and eastern suburbs have seen the biggest declines of any metropolitan region in the past two months. Ultimo in the CBD, where two-thirds of apartments are let, for example, has seen vacancy rates triple and the city’s Central Business District (CBD) and suburbs suffer. Regional Queensland is likely to suffer as several pillars prop up Brisbane’s property market, such as the number of Category A central buildings that will be particularly acute and remain constrained due to low availability. Not surprisingly, the CBD and its suburbs and parts of the outer city have seen a marked drop in prices over the past year and a half, but have suffered more than the rest of Brisbane over that period.
In this historic cycle, the most expensive parts of Sydney and Melbourne appear to be leading the current downturn. On the suburban level, some of the biggest price declines have been in the areas where the downturn has been most pronounced – the inner city and Sydney’s outer suburbs.
Some real estate agencies speculate that this trend could lead to a decline in the value of rural properties, even beyond the pandemic. Some would argue that while there is no direct link between COVID 19 and the current downturn in Sydney and Melbourne, the global fluidity of the market means that Covid 19 is already having an impact on the local property market. If the coronavirus is under control, it will directly affect the problems of our global economy. While buyers are hoping to capitalize on this current loss of seller confidence, Neal believes the Blue Mountains real estate market will withstand the big impact of CO VID 19 because it is a lifestyle area that attracts certain types of buyers. Life in the countryside offers large houses, green spaces and open spaces and is also a great place for a family-friendly lifestyle.