Property prices have made a major comeback in the wake of the coronavirus, recording the strongest quarterly growth since the last quarter of 2019.
The Australian Bureau of Statistics (ABS) has recorded a 3 per cent increase in property prices in all capital cities in the December quarter of 2020, with Melbourne coming out the strongest despite its months-long lockdown.
ABS Head of Prices Statistics Michelle Marquardt says it’s the first time all capital cities have seen a rise in more than six years.
“The rise in property prices is consistent with a range of housing market indicators. New lending commitments to households, auction clearance rates and days on market all improved during the December quarter,” Michelle says.
Property prices in Melbourne increased by 3.4 per cent, closely followed by Sydney at 3 per cent. The slowest growing capital cities, Darwin and Adelaide, saw values rise by 2.2 per cent and 2.6 per cent respectively.
In terms of dollars, Australia’s 10.6 million residential dwellings have risen in value by $257.9 billion to $7.724 trillion in the last quarter of 2020. The news means the mean price of residential dwellings in Australia is now $728,500.
The majority of this growth came from houses, but attached dwellings, such as apartments and townhouses, recorded gains of their own, rising 1.4 per cent in Sydney and 2.5 per cent in Melbourne.
The numbers are a capstone on an already positive year for real estate, which saw annual residential properties prices rise by 3.6 per cent for 2020.
“The numbers of residential property sales increased in all capital cities apart from Melbourne and Hobart during 2020,” Michelle says. “The strongest increases were observed in Perth, Canberra, Sydney and Brisbane.”