Australia's main residential market performed best in the second quarter of the year, with prices remaining resilient despite the effects of the COVID-19 outbreak, according to the latest Knight Frank study .
Australasia and the North American region were the most resilient during the quarter, but the former recorded the best performance on a year-over-year basis. In fact, the Australasian region saw a 2% annual gain in the June 2020 quarter.
"The relatively strong performance of Australian cities is the result of the low number of listings, which keeps property prices firm, and by global comparison we have largely escaped the impact major cause of COVID-19, "said Michelle Ciesielski, Australia's residential research manager at Knight Frank.
Five Australian cities – the Gold Coast, Sydney, Perth, Brisbane and Melbourne – rank among the top 24 luxury residential markets in the latest Knight Frank Prime Global Cities Index.
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Of the five cities, the Gold Coast ranked the highest in 10th place, reporting annual price growth of 3.4%. Sydney and Perth followed, both registering gains of 3%. Brisbane ranked 16th with a gain of 2.5% and Melbourne ranked 24th with a growth of 1.2%.
Shayne Harris, National Residential Sector Manager at Knight Frank, said demand for luxury properties in Australia is expected to remain strong, especially given the interest of very high net worth individuals in spacious housing.
“In cities like Sydney, we are seeing greater demand for higher value properties such as large single-family homes or large apartments, which support prime residential values,” he said. he declares. 'During the pandemic, we have seen the ultra-rich make their next residential property buying decisions based on quality of life, so places like South East Queensland will become more attractive in a world post-COVID. ”
Harris said housing conditions are currently favorable, making the odds of an increase in distressed sales very low. He said what happened during the 2008 global financial crisis is highly unlikely in the current market environment.
"Lending criteria are more stringent, new supply is limited in several cities, interest rates are low, and help is currently being offered by both lenders and governments", did he declare.
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