The May data from CoreLogic shows Sydney remained the most robust real estate market as Australia entered the Covid-19 lockdown.
The high levels of price growth across the city indicates there will be a release of pent-up demand for properties as economic activity returns to normal and confidence returns.
The Sydney market recorded price growth of 3.2% for the quarter ending April 30, compared with the corresponding period in 2019, according to CoreLogic.
This compares favourably with the national picture, which was down 2.1% compared with the same period in 2019. While this overall performance may seem a small adjustment given the severity of the Covid crisis, the national picture was a very healthy +4% back in the December quarter.
After Sydney, the next strongest markets for quarterly price growth were Darwin (2.3%), and Melbourne and Canberra, which both registered growth of 1.4%.
Post-lockdown optimism is underpinned by the annual growth in Sydney prices of 14.3% to the end of April, compared with the corresponding period in 2019.
Annual settled sales to the year ending April 30 were up 23.5% against a national average of 7.8% – a second pointer to the sector’s underlying strength.
The third piece of evidence is the result achieved for the days-on-market in the April quarter. Sydney properties sold within an average of 27 days compared with 54 in 2019. The national average was 37 days.
For buyers who are confident of their employment status, this is a great time to consider either your first purchase or moving up the ladder.
Owners of existing property who have been thinking of upgrading should appreciate that they stand to make financial gains right now.
While their own property might not reach pre-COVID prices, their target property will likely be cheaper, too. Once the market starts to regain even some of its lost momentum, many properties may move beyond financial reach.
As your real estate agent, we recommend that if you’re thinking seriously about buying a first property or upgrading, now is the time to discuss your options.
The data shows that Sydney’s property market entered the lockdown in a strong position. There is ample evidence to suggest the city’s property market will pick up pace quickly as confidence and business activity return.
