The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
JOIN US FOR A ONE-DAY DEEP DIVE INTO THE FUTURE OF THE INDUSTRIAL SECTOR
FIND OUT HOW THE INDUSTRIAL MARKET IS CHANGING IN 2026
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
print
Print
OtherAna NarvaezFri 01 May 20

No Major Declines in House Prices, Yet

5b9a464a-474a-4556-9a12-4db538db83d5

The post-lockdown house price index for April has returned a less dramatic result than many expected, with capital city values rising 0.2 per cent over the month.

Despite significant falls in other property indicators like listings, clearance rates, sales and sentiment, Corelogic’s house value index showed no evidence of a material decline in April.

The result was still the weakest month-on-month movement since June last year and half the 0.7 per cent rate of growth in March. Annual growth remained stable at 9.7 per cent.

The Melbourne property market returned the weakest result, falling into negative territory over the month at -0.3 per cent. Hobart was the only other market to post a decline.

Corelogic head of research Tim Lawless said the trend for positive growth started to weaken in mid-March as social distancing policies were implemented, placing considerable strain on consumer sentiment.

Home sales have been less resilient, recording a conspicuous 40 per cent decline in April to reach 29-year lows. The drop in property sales is most acute in Melbourne, with sales down 85 per cent over the past eight weeks while Sydney experienced a 79 per cent decline.

CBA economist Gareth Aird said that he expects price data to fall into line with other property market indicators in coming months.

“We suspect that there are some timing issues around the Corelogic data and actual price action,” Aird said.

“Any lags should catch up in due course.”

Related: Borrowing Surge to Ride Out Covid-19 Downturn


Corelogic house price index: April

Month %Quarter %Annual %Median value
Sydney0.43.214.3$889,992
Melbourne-0.31.412.4$695,761
Brisbane0.31.53.8$507,982
Adelaide0.40.81.5$439,397
Perth0.21.0-2.5$448,355
Hobart-0.10.55.0$484,645
Darwin1.72.3-2.7$402,225
Canberra0.01.44.3$626,997
Combined Capitals0.22.19.7$647,414
Combined regional0.51.83.2$396,070
National0.32.18.3$557,739

Commonwealth Bank economists forecast 10 per cent decline in house prices over the next six months.

The headline-grabbing house price fall forecasts have ranged from the bearish 30-plus per cent, to the more favourable 5 to 10 per cent over the remainder of the year.

And with the prime minister flagging an exit from many restrictions within the next few weeks—“Australians deserve an early mark”—fund manager and economist Christopher Joye expects house prices to hold up, or even rise.

Joye said that an early exit from containment is very important for the housing market.

“House prices continued to rise in Sydney and Brisbane through April and there’s no evidence yet of any housing catastrophe,” Joye told Peter Switzer.

“I think the housing market will experience over the next six months a period of softness, I think house prices will likely flatline, or at worst fall by up to 5 per cent.

“Once we get through this air pocket over the next six to nine months I think the boom will continue and we will get another 10 to 20 per cent of capital gains to complete this cycle.”

ResidentialAustraliaConstructionReal EstatePlanningPlanningSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Multiplex Moderna facility
Exclusive

Industrial Subsectors Win Investor Attention as Demand Blossoms

Clare Burnett
7 Min
Bee Bricks hero
Exclusive

Beyond Green: The Rise of Net-Positive Architecture in Australia

Clare Burnett
7 Min
Exclusive

Central Element Hotel Debut Spearheads Oxford Street Renewal

Taryn Paris
8 Min
London skyline near the walkie talkie tower showing the 85 gracechurch street development.
Exclusive

Basilica to Business: London Office Tower’s Historic Rework

Renee McKeown
6 Min
Hotel Indigo Adelaide hero
Exclusive

Neighbourhood Hotels Reinvent Urban Hospitality

Clare Burnett
5 Min
View All >
Woden Village hero
Residential

Hellenic Club Plots 200-Home Stage for ACT Masterplan

Clare Burnett
Investa Approved Commercial 105-153 Miller Street North Sydney
Office

Investa Pursues Twin Strategy for North Sydney MLC Tower

Vanessa Croll
Leeka 188 Commercial Road Prahran HERO
Residential

Leeka Wins Nod for 32-Home Project at Prahran

Leon Della Bosca
The 32-home development in partnership with Beulah will rise opposite a landmark food market in Melbourne’s south-east…
LATEST
Woden Village hero
Residential

Hellenic Club Plots 200-Home Stage for ACT Masterplan

Clare Burnett
2 Min
Investa Approved Commercial 105-153 Miller Street North Sydney
Office

Investa Pursues Twin Strategy for North Sydney MLC Tower

Vanessa Croll
5 Min
Leeka 188 Commercial Road Prahran HERO
Residential

Leeka Wins Nod for 32-Home Project at Prahran

Leon Della Bosca
2 Min
Development

Rare Newcastle Wharf Project Now Accepting EOIs

Partner Content
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/house-prices-fall-corelogic-covid