The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
17
print
Print
ResidentialAna NarvaezThu 14 May 20

Home Sales Fall as 600,000 Jobs Lost

83c0077e-c818-4753-a1b8-b94b1c64a08a

The loss of 594,000 jobs in April is the biggest monthly decline in employment on record, far surpassing the previous record of 74,900 jobs in November 1992.

While the official ABS jobless rate climbed by one percentage point to reach 6.2 per cent, the number of jobs lost, and mass layoffs, paints a much starker picture of the impact of Covid-19 on job security and the broader economy.

But the impact of job losses on the property market is uncertain at best. In its April financial stability review, the Reserve Bank said that while the pandemic would impact the turnover of housing stock, it “remains unclear how this will affect residential property prices”.

The Commonwealth Bank is the latest lender to model bearish house price falls—warning that a second wave of infections could cause house prices to fall by up to 32 per cent.

The bank’s chief executive Matt Comyn said that a second lockdown could worsen joblessness and put the housing market under significant pressure.

University of Sydney research fellow and economist Cameron Murray points out that unemployment is not helpful in predicting house price movements.

“The last time we had similar unemployment numbers, Sydney house prices increased 13 per cent the next year,” Murray said.

Murray said that reports of an uptick in enquiry and increasing investor interest means that it is hard to know which way prices will go.

“Don’t dismiss the possibility of a sharp boost in house prices over 2020.

“If foreign buyers come back into the market then we are in for a multi-year property upswing.”

Related: No Major Declines in House Prices, Yet

▲ Anecdotal reports of increasing enquiry from foreign buyers has sparked optimism among property speculators.


With anecdotal evidence that there has been an increase in enquiries—Australia’s largest residential developer Stockland has reported a boost—there’s also reports of a surge in demand from Chinese buyers.

“Australia has so far managed the pandemic well and looks even more appealing to foreign buyers than in the past,” Juwai IQI executive chairman Georg Chmiel said.

“We still have strong demand from Chinese buyers for Australian property.”

Meanwhile, the sale of new homes fell to record lows in April, declining 22.8 per cent over the month according to the Housing Industry Association’s sales figures.

HIA chief economist Tim Reardon said that falling sales has pushed project cancellations to more than four times the typical rate.

“During shocks such as the GFC or the 2018 credit squeeze, the cancellation rate peaked at 17 per cent.

“In net terms, this equates to a contraction of more than 50 per cent in the volume of new building work, [which] will be felt in the second half of 2020.”

ResidentialAustraliaFinanceReal EstatePlanningPlanningSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Global Shifts Redraw the Map for Australia’s Office Market
Exclusive

Global Shifts Redraw the Map for Australia’s Office Market

Vanessa Croll
7 Min
Salta MD Sam Tarascio
Exclusive

Why Salta Won’t Break Ground on $400m Pipeline

Leon Della Bosca
7 Min
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
View All >
Gatton $150m Over-50s Solara Estate hero
Land Lease Communities

Undersupply Drives Regional Qld Over-50s Land Lease Plans

Phil Bartsch
Parramatta Road Rezoning HERO
Policy

Parramatta Road Rezoning Opens Way for 8000 Homes

Vanessa Croll
Sponsored

Mirvac and DisplaySweet: Decade of Innovation in Property Sales Tech

Partner Content
The 10-year collaboration has delivered more than 40 projects, transforming the off-the-plan buying experience...
LATEST
Gatton $150m Over-50s Solara Estate hero
Land Lease Communities

Undersupply Drives Regional Qld Over-50s Land Lease Plans

Phil Bartsch
4 Min
Parramatta Road Rezoning HERO
Policy

Parramatta Road Rezoning Opens Way for 8000 Homes

Vanessa Croll
4 Min
Development

Mirvac and DisplaySweet: Decade of Innovation in Property Sales Tech

Partner Content
3 Min
Goldfields Elimbah Sell-Off hero
Residential

Moreton Bay Superlot Expected to Top $300m

Phil Bartsch
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/home-sales-unemployment-house-prices