Real estate hit hard, but safe for now- expert warns

 Real estate hit hard, but safe for now- expert warns

New statistics reveal Queensland’s average property value hasn’t taken too much of a hit due to COVID-19, despite a large drop in the number of property sales.

Data collected by property report company CoreLogic shows that in fact, property values across regional Queensland rose 0.2 per cent and 0.3 per cent in the state’s capital- Brisbane.

Positive data were recorded nationwide too, with only two major cities- Melbourne and Hobart’s recording dips in average property value of 0.3 and 0.1 per cent respectively.

Nationally, the country’s average property value rose by 0.3 per cent, although it must be added that the speed of growth has slowed significantly.

CoreLogic estimated settled sales dropped by around 40% in April and states that the effects will be felt the most in the country’s larger cities.

Head of research for the online data analytics company, Tim Lawless said: “Sydney and Melbourne arguably show a higher risk profile relative to other markets due to their large exposure to overseas migration as a source of housing demand.” 

“The larger cities have greater exposure to the downturn in foreign students, stretched housing affordability and already low rental yields that are likely to reduce further on the back of rising vacancy rates and lower rents,” he said.

Mr Lawless goes on to mention that real estate agents will be amongst the hardest hit by the impacts of COVID-19.

“Real estate agents will be among the most impacted by the decline in transactions. A significant reduction in housing activity will also have an impact on banking and finance Sector,” he said.

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