Property prices across most major Australian cities have plunged for the third month in a row, as ongoing impacts of the coronavirus pandemic beat up the economy.
The latest CoreLogic property report shows dwelling values across Australia fell by 0.6 per cent in July compared to June, with Melbourne and Sydney experiencing the largest drop in prices.
In the same period, Sydney values fell 0.9 per cent to a median price of $866,110, while Melbourne prices dropped 1.2 per cent month-on-month with a median property value of $678,334.
CoreLogic’s head of research, Tim Lawless, said the outlook for the industry remained challenged as support measures shielding the housing market from the full brunt of the pandemic are due to be reduced from October.
“The recent concerns of a second wave of the virus and the potential for renewed border closures and stricter social distancing polices are likely to further push consumer sentiment down,” Mr Lawless said.
“This is likely to weigh on both home buying and selling activity more broadly.”
In the past quarter, the value of property in Sydney fell 2.1 per cent and Melbourne has dipped 3.2 per cent.
Mr Lawless said the housing market remained relatively resilient through the pandemic due to government and banking support measures.
“Record low interest rates, government support and loan repayment holidays for distressed borrowers have helped to insulate the housing market from a more significant downturn,” he
said.
Sydney house values have fallen 0.9 per cent, while Melbourne prices have dipped 1.2 per cent lower. Picture: Gaye Gerard
In July, Brisbane’s housing market fell 0.4 per cent compared to June, while Perth and Hobart dropped 0.6 per cent and 0.2 per cent respectively over the same period.
Brisbane’s median house price is $502,167, while Perth’s average is $439,092 and Hobart’s is $486,771.
Canberra and Adelaide were the only capital cities where values improved. Canberra values increased 0.6 per cent to a median property price of $641,360 and Adelaide median values sit at $441,826.
The report said auction volumes were showing signs of improvement and were tracking higher than 2019.
Newly listed properties are up 46 per cent compared to the lows experienced in early May.
According to CoreLogic, rental rates have continued to trend lower, with Hobart, Sydney and Melbourne having the weakest rental conditions.
“Some inner city areas of Melbourne and Sydney have seen rental listings more than double
since March due to the combined effect of temporary migrants departing, and overseas arrivals, including foreign students stalling,” Mr Lawless said.
“Compounding this weak demand position is the surge in construction activity and investment over previous years, which has added to inner city rental supply.”
The post Property prices plunge across major cities due to COVID recession appeared first on realestate.com.au.