Property market dashboard not relevant
Work done by researchers in the City Analytics Lab in the City Futures Research Centre at UNSW Built Environment in creating a COVID-19 Property Market Dashboard for Australia, has been treated with indifference.
The dashboard provides a current snapshot, updated daily, of how the property market is performing before and during COVID-19. It consists of an interactive map of Australia, identifying the COVID-19 cases hotspots based on data from state departments of health.
As of 22 April 2020, the dashboard reports the total volume of sales across Australia is down $237 million compared to the same time last year. Total sales have dropped at least 30% in all capital cities since COVID-19 cases started increasing in March 2020.
Sydney total sales have dropped 79% (-$454 million) and Melbourne has dropped 85% (-$584 million) in the past eight weeks. Adelaide has the largest proportional loss, down 83% compared with last year.
Brisbane is the only market showing a moderate improvement in sales value in April.
“This report in my opinion is not relevant moving forward as the real estate industry is like a restaurant that has only been able to trade for breakfast but normally opens for lunch and dinner as well.
“None of what appears in this report is surprising to me given that buyers in most capital cities could not even view properties,” said Mark Flinn, Licensee and Sales Manager, Ray White, Port Douglas.
The eventual opening of the borders and the further easing of restrictions will be central to the Douglas Shire property market which still appears to be an option for interstate buyers.
And Port Douglas realtors are confident the market will feel the positive effects from these changes.
“Most of our buyers come from interstate to view properties. I have been dealing with several buyers that are ready to buy, but are just waiting on the borders to open before they can fly up to finalize an inspection and purchase.
“Given the major restrictions, I think the market has still done well to hold up with as many sales as it has,” said Flinn.
And Michael Samson, Managing Director/Licensee, LJ Hooker Port Douglas, said with the announcement this week that some restrictions are going to be lifted, the inquiry level for purchase has again risen.
“I believe as confidence returns and more restrictions are lifted we will see a return to an active marketplace very close to Pre-COVID-19 levels.
“When state border restrictions are relaxed, then Port Douglas will be well placed to take advantage of a return to Australian based tourism,” he said.
In referencing the virus, Samson said the firmest lockdown rules in Queensland came into play at the end of March, and at the start of April.
“The impact on the property sales market in the local area was an immediate downturn of property inspections and resulting sales.
“The downturn continued for the next few weeks and while strict care was taken during personal property inspections, it seemed many people had placed their property aspirations on hold,” he said.
Meanwhile, auction clearance rates have dropped in all major cities across Eastern Australia, except Canberra.
“It is hoped the insights obtained through the dashboard can assist Australians better understand, monitor and make more informed decisions in relation to property as the COVID-19 pandemic continues to unfold,” said Professor Chris Petit, Chair of Urban Science and Director of the City Analytics Lab.
The COVID-19 Property Market Dashboard provides graphs and charts which report on key property market metrics, including total sales value, median property prices, auction clearance rates, the house value index, performance of the ASX 200 real estate sector, market sentiment and the volume of property sales.
“It will assist in making data-driven decisions, such as being able to explore rezoning options, determining the economic benefits of a development proposal, or even the location of important infrastructure, like new metro or light rail stations,” says Graeme Kernich, Chief Executive Officer of partner organisation FrontierSI.
The dashboard has been developed through the Value Australia project, a CRC-Project in partnership with FrontierSI, Commonwealth Bank of Australia, PropertyNSW, Liverpool City Council and Omnilink.
See the COVID-19 Property Market Dashboard.
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