Australian real estate market in 2021: Buy or sell?
The Covid-19 obsession makes the Australian real estate market in 2020 and the demand to buy/sell real estate in this country is relatively bleak. So what are the prospects for Australian real estate 2021?
How does the Covid-19 translation affect the Australian real estate market?
Like many other countries in the world, the Australian economy in general and this country’s housing market in particular are affected. Confused psychology about the epidemic has made every need to buy a house or to invest in real estate gradually decrease.
After decades of steady growth, Australian real estate plunged for the first time in June 2019 after the government tightened control of the real estate market (especially with the Chinese) to avoid investment. The opportunity to bubble real estate, while increasing transparency in the transaction process.
With the attractive potential, the Australian real estate market soon regained its momentum and all demand for buying, selling or investment recovered a few months later, but this did not last long when the Covid-19 outbreak broke out. broadcast in early 2020.
In the first 5 months of 2020, many people believe that housing prices in Australia can fall by about 5 – 10% due to closed borders, social gap, delayed construction projects, people are increasingly saving. More by reducing income or losing jobs, migrants are unable to enter Australia, resulting in greater supply than demand …
In fact, the national average house price decreased only about 1.1%, the decline mainly occurred in the two largest markets, Sydney and Melbourne, and other cities did not fluctuate much or around 0.1 – 0. , 3%.
The Australian real estate market grew when the Covid-19 restriction was relaxed
The latest figures released by the Australian Bureau of Statistics (ABS) show that new home loans in August 2020 increased by 6.5% compared to July, helping the real estate finance sector increase by 19.4. billion dollars in value.
ABS chief economist Bruce Hockman said the figures reflect the easing of anti-Covid-19 restrictions in July, but housing finances remain below pre-outbreak levels.
According to ABS, home loans increased by 5.7% and home loans in Australia for investment increased by 8.6% in July. First home buying also rose 3.4% in the same period.
In mid-August 2020, Sydney ranked first in the country in terms of successful home auctions (74.6% from 749 auctions compared to 54.2% from 638 auctions in the same period last year). . In Sydney, median house prices were recently recorded at $ 1,350,000 and apartment prices averaged around $ 857,500.
Melbourne also saw a high rate of successful home auctions, recorded at 70% in 1,173 recent auctions compared with 52% of 920 auctions taking place in the same period last year.
According to the well-known real estate research firm CoreLogic, although the rate of successful home auctions has decreased, the rate recorded at major auction centers is still likely to remain high (about 60 – 70%) shows that this is still a favorable market for both home buyers and sellers.
Australian real estate market in 2021: Buy or sell?
Real estate experts say that with the stable immigration situation after the border opens, the disease is somewhat controlled … will create a very significant boost for the Australian real estate market from the end of 2020 onwards. .
“Sooner or later the border will have to reopen because Australia needs immigrants for economic and social development,” said Dr. Shane Geha from the Australian Institute for Urban Development Studies (UDIA). There are many foreign buyers coming to Australia to settle because it’s a great country to live in. ”
According to Professor Robin Goodman from RMIT University (Melbourne): “We have seen foreign clients and people living abroad postpone their home buying plans. We know our demand for real estate. Immigration is huge, but they have had to suspend the plan because they can’t come to Australia to visit the house. ”
According to Professor Steven Rowley from Curtin University (Western Australia):
“The freezing of immigration will affect real estate demand, most notably in big cities. Declining population, rising unemployment and falling consumer confidence are often bad news. That also means construction will be delayed, projects will be postponed … while most homes and condominiums in Australia (usually bought by foreigners) will have to be “Wait time”. ”
Realestate.com.au’s Nerida Conuceree, chief economist at Australian real estate site Realestate.com.au, thinks the timing of real estate is individually financed: “Buying and selling in the same market is buying To keep property for a long time is always best, especially when the market is uncertain.The real estate search on our website has been steadily increasing since July and demand continues to grow .. . ”
Michael Yardney, managing director of Metropole.com.au, said: “Depending on your own goals, budget, timeline, risk profile and circumstances as to whether 2021 is the right time. Good point to buy or not. If you are financially stable 2021 might be a good opportunity to buy a home in Australia as a lifetime asset. ”
Considering the two largest markets, Sydney and Melbourne, Melbourne has many competitive advantages over Sydney, because Sydney’s geographical location basically cannot be expanded further. Therefore, Melbourne’s living standards and housing prices are still more reasonable than Sydney, and there are areas with attractive housing prices for everyone to buy or invest in.
In addition, housing prices in the Brisbane, Adelaide, Darwin and Canberra markets are steadily rising suggesting that the Australian real estate market is recovering in the same process as it did in the past.
During the crisis 29 years ago, Australian real estate recovered like a storm, the real estate market in all 8 major cities increased from 2 to 27% in 3 years from 1991-1993. At that time, the real estate market in the fringe areas was also very strong, if not stronger than the CBD.
Period 2008-2010 Australia is the only country to avoid the global financial crisis. Despite the difficult situation, property prices in all central cities as well as in remote areas such as Ballarat, Bendigo, Launceston and Armidale have increased.
Experts believe that the Australian real estate market will be strongly affected by the Covid-19 epidemic but will not last long. The increase in Australian property prices will depend on a number of factors such as how much the property will fall, how long will the national shutdown last …
If Australia had to close until the end of this year, the damage would be at its lowest, the unemployment rate would be around 10% and property prices would drop 5-10%, then economic stimulus measures would help home prices bounce back about 10% and hold steady for a few years.
Analyzing the positive side of this crisis, Australian Golden Land believes that the Australian real estate market has been neglected for the past two years before Covid-19 happened, but government stimulus packages will help. The market has a boost to strong growth.
Concentrating on economic recovery when the epidemic goes through will help the real estate get hot again. At times like this, independent investors and looking for a different direction will have many opportunities to increase profits.
If you need more information about the market, how to invest in real estate in Australia or need advice on Australian immigration, please contact Hotline 0911.899.595 (Hanoi) – 0911.899.593 (Da Nang) – 0911.899.597 ( HCMC) for more information.