The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
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
23
print
Print
ResidentialRenee McKeownTue 01 Dec 20

House Prices Surge Towards Pre-Covid Highs

b625a8ba-766d-49c2-b60c-7bcf1283d78d

National house prices could surpass pre-Covid levels in early 2021 as dwelling values hit record highs across 32 regions.

The Corelogic report for November shows the value of homes rose across every city and state pushing the market further along its road to recovery.

Top performers are Brisbane, Adelaide, Hobart and Canberra where prices moved to record highs in November.

However the rate of improvement is better in some places than others, as Sydney and Melbourne sit at 2017 prices, Darwin at 2006 and Perth at 2007 prices according to the Corelogic report.

Corelogic house price index: November

LocationMedian ValueMonthQuarterAnnualTotal Return
Sydney$860,9670.4%0.3%3.7%6.3%
Melbourne$672,1720.7%-0.4%-0.9%2.5%
Brisbane$515,2670.6%1.5%3.2%7.2%
Adelaide$459,8961.3%3.4%5.3%9.4%
Perth$463,8461.1%1.9%0.8%5.2%
Hobart$505,6831.4%2.9%5.6%10.9%
Darwin$405,8571.9%4.7%5.9%11.7%
Canberra$672,8661.9%3.3%7.0%12.1%
Combined capitals$642,8630.7%0.7%2.4%5.7%
Combined regional$411,1291.4%2.8%5.7%10.6%
National$565,4740.8%1.1%3.1%6.6%

^Source: Corelogic November Home Value Index

Corelogic head of research Tim Lawless said in November there was more divergence between house and unit prices.

Across combined capitals houses are up 1.1 per cent and down -0.6 per cent for units .

“This trend towards stronger conditions in detached housing markets is evident across most of the capital cities,” Lawless said.

“Relative weakness in the unit market can be attributed to factors including low investment activity, higher supply levels in some regions, and weaker rental market conditions across key inner city unit precincts.”

Regional areas continued to perform well, doubling the rate of capital cities at 1.4 per cent compared to 0.7 per cent in the metropolitan areas.

Queensland led the charge with a 3.2 per cent lift over three months, closely followed by NSW at 3.1 per cent.

Commsec senior economist Ryan Felsman said this is the biggest lift in regional home prices in 16.5 years.

“The recovery in Australia’s residential property market continues, supported by record-low mortgage rates with increased competition among home lenders fanning home price growth,” Felsman said.

“According to the Bureau of Statistics, the value of new home lending commitments surged almost 34 per cent in the four months to September with another gain of around 2.5 per cent expected by economists in October.”

While home prices are on the up, rental affordability is actually improving in Sydney, Melbourne, Brisbane, Adelaide, Hobart and Perth through the pandemic.

The Homebuilder extension is also expected to have an impact on house prices and approvals which hit a 20 year high according to the ABS.

ResidentialAustraliaReal EstateSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
View All >
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
The proposal that would best Thirdi’s Dairy Farmers north tower has moved ahead after being declared state significant …
LATEST
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
2 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
3 Min
ESR building ESR completes delisting
Industrial

ESR Reveals New Team After Hong Kong Delisting

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/house-prices-surge-towards-pre-covid-highs