The Australian real estate market was among the best performing in the world in terms of price growth in the first six months of 2020, according to a study by Knight Frank.
Australia moved up 37 places in the world rankings from a year ago, occupying 19th place on the Knight Frank Global House Price Index in the second quarter of 2020.
House prices in Australian markets rose 6.1% in the 12 months ending in late June. It is, however, essential to note that in the first six months of 2020 prices had fallen by 0.4%.
While annual price growth in Australia had declined slightly from the first quarter of the year, it was still above the 4.7% average price increase in 56 other countries and territories tracked in index during the quarter, said Michelle Ciesielski, head of residential research for Australia at Knight Frank.
"Australia has handled the COVID-19 pandemic better than some other countries and territories around the world, with the duration and severity of the lockdown not being as strong, which is part of its performance. stable, ”she said.
Also read: No – real estate prices will not drop 40%
Ciesielski said the stable growth in housing markets in Australia could also be attributed to the preconditions for the COVID-19 outbreak. As 2020 approaches, Australia was already experiencing high demand and low inventory levels, she said. This has continued amid the pandemic, as homebuyers remain interested in property while sellers take a wait-and-see approach.
In Sydney, for example, the severe shortage of homes for sale by auction and private treaty keeps prices stable, said Shayne Harris, national head of residential research at Knight Frank.
"While over the past eight weeks, the difficulties in securing financing have seen the number of registered bidders shrink at auctions, the liquidation rate remains stable, everything like the prices in the inner and middle rings of the Sydney metropolis, ”he said.
Brisbane is also holding up well. Harris said the city appears to be seeing a faster-than-expected recovery, particularly given its tight apartment supply line. With that, the city is poised to emerge in a "very good position" for 2021 and beyond, Harris said.
"After a long period of weak price growth Brisbane is the best capital side by side with Perth in the short to medium term," he said.
The table below shows the top 20 housing markets in the world and their price development during the second quarter of the year:
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in real estate, it is important to ensure that you not only have the lowest available rate possible, but also have the right loan features for your needs. needs.
You only need to fill in a few details below and we will then arrange for a local mortgage broker to contact you and determine the characteristics or types of loans that suit your needs. We'll even help you with the paperwork. In addition, an appointment is free.
We value your privacy and take all your information seriously – you can check