Canberra is now Australia’s second most expensive real estate market. Capitals are rising from the COVID recession

Canberra is now Australia’s second-most expensive realty market. It has now overtaken Melbourne which was hit by lower investor activity, prolonged COVID-19 lockdowns, and was subsequently relegated to the second-most expensive real estate market in Australia.

CoreLogic released new data that shows Canberra now stands at $672,000. This is significantly higher than Melbourne, which stands with $672,172.

Sydney is still the most costly property market with a median value of $860 9977

These are followed by Brisbane (515 267) and Hobart (505 683). Next is Adelaide (459,896).

Darwin is still the most affordable capital to buy a property, with a median property worth of $405,857.

Nationally, the median value of a property in Australia – which includes both units and free-standing houses – is now $565,474. It rose 0.8% in November.

Property prices are now just a touch lower than before the pandemic.

CoreLogic’s Head of Research Tim Lawless stated, “The national home value index is still seven tenths or a percent below March’s level. But, if housing prices keep rising at this rate, we could see a recovery in the COVID downturn as early as January or February next year.”

“The recovery in Melbourne will take more time, as home values remain five percent below their peak.”

Curiously, while houses are continuing to gain strongly – rising 1.1 per cent over the past three months – units fell by 0.6 per cent over the same period.

Lawless suggests that the decrease in investor activity will drive unit prices and a weaker rental industry due to closed international border.

Lawless stated, “This trend towards stronger conditions in detached housing markets has been evident across all capital cities.”

“Relative weakness of the unit market is due factors such as lower investment activity and higher supplies in certain areas. It can also be attributed to weaker rental market conditions within key inner-city precincts.

Andy Kerr from NAB Executive of Home Ownership stated that property values in Australia have been remarkable resilient during the worst of CoVID-19.

Kerr stated, “The market for housing has performed better that we expected and we are witnessing a shift in sentiment quickly.”

“In November, NAB home loans were in high demand. The number of applications for NAB home loans has increased by more than 25% in the last six weeks compared to the six previous weeks. Demand has been supported by record low interest rates, increased confidence in the economy’s recovery and strong government support.

Mr Kerr stated that NAB expects record low interest rates in the future to be a driver of values.

We expect strong interest to continue given the possibility that rates will remain low for several more years and additional stimulus measures from the state governments. Mr Kerr stated that the current projections for property prices rising by upwards to 5% over the next two years are based on apartment prices outpacing house price growth.

“While there are still risks from the continued employment impacts of COVID-19 and a probable slowdown population growth, today’s data shows that home prices have stabilized.” NAB is seeing an increase in interest in certain regions.

AUSTRALIA PROPERTY PRICES NOVEMBER 2020

City:	Monthly changes	Median Value
Sydney	+ 0.4 per cent	$860,967
Melbourne	+ 0.7 per cent	$672,172
Brisbane	+ 0.6 per cent	$515,267
Adelaide	+ 1.3 per cent	$459,896
Perth	+ 1.1 per cent	$463,846
Hobart	+ 1.4 per cent	$505,683
Darwin	+ 1.9 per cent	$405,857
Canberra	+ 1.9 per cent	$672,866
National	+ 0.8 per cent	$565,474