It is no surprise that Melbourne remains the main drag on the national housing market, though, with the easing of COVID-19 lockdown restrictions and private inspections and market appraisals now permitted, November is set to see a rise in activity.
Regional market values continue to outperform the capital cities, according to CoreLogic’s latest Market Update for October. This is largely due to houses in regional areas not recording the same growth pre-COVID. Homes in regional areas are generally more affordable and do not have a high base to fall from, says CoreLogic.
People are also being seen to migrate towards major regional cities and away from metropolitan areas, electing instead to commute back to cities where required.
COVID-19 has been a key trigger in people’s choice to leave major cities; with the new-found ability to work remotely, the desire for a lifestyle change and the extra space that lower density housing options provide, plus regional centres are more affordable.
Lifestyle and lower density housing decisions can also be seen in the performance of the rental market between March and September where the decrease of unit rents across major cities, particularly Melbourne and Sydney is 5.5% and 5.0% respectively compared to house rents that have fallen by 1.0% and 1.3%, as reported by CoreLogic in their Melbourne Market Update for October.
Selling Your Home During Coronavirus
This could again suggest that COVID-19 is driving people towards a lifestyle change where they move away from high-density living, instead opting for the ‘Great Australian Dream’ and the desire for a home and backyard. All of this makes selling your home during lockdown an advantage, not a hinderance.
Other factors driving the decline is international and state border closures and oversupply of units and apartments in the inner-city areas.
Vendors are predicted to make the most of a late Spring selling season and together with continued Government incentives, low interest rates, tax cuts and the possibility of relaxed lending laws, plus further restriction easing in Melbourne, there are certainly incentives to ensure activity in the housing market.
If you have any concerns, questions or would like to arrange a current market appraisal, please do not hesitate to contact us.
