After months of uncertainty in home values due to the COVID-19 pandemic in Australia, August CoreLogic data confirms where the trends lie, how different price ranges are responding, and what the outlook is for the remainder of 2020.
Regional markets remain star performers
Regional markets have been the star performers of 2020, outshining their city cousins across the largest states. Virtually all First National regional offices have reported a surge in demand from both homeowners and tenants, looking to escape the cities. Their lower density and price points continue to be their major appeal, and many have not been affected by the fall in overseas migration. If you are considering a Sea Change or Tree Change, ask us for a copy of our new guidebook.
In Broome we have benefited greatly from increased visitors and the lowest vacancy rate we have seen in a VERY long time. We are experiencing higher than normal levels of buyer enquiry particularly in the investor markets which hasn't been the case for the last 5 years. Previously we have mainly been selling homes to local buyers so to see an interest in our investor markets again is quite exciting for Broome. When you compare the return on investment in Broome most of our properties currently for sale are sitting at approx 6 or 7% which is a lot higher than you would normally see in city markets. Currently we have 13 properties under offer pending settlement and have already seen great numbers in settled sales for this finance year. If you are considering a move or would like an up to date value on your home or investment property you can arrange one here.
Combining the results across the capital cities, affordable (lower quartile) homes increased in value by 0.1% nationally. Separating out Melbourne, where affordable homes fell by 0.6%, it’s clear that various government incentives are motivating first home buyers and underpinning values in this range.
Monthly change in capital city home values