With Australia having seemingly weathered the worst of its COVID-19 storm, many eyes are now keenly fixed on the property market as it seeks to bounce back from a testing 2020.
And the initial signs in 2021 have been positive. All states saw year-on-year increases in sales settlements, with the exception of Victoria, though notably it recorded the most property transfers overall.
This upward trend appears set to consolidate in February with PEXA seeing greater than 20% growth year-on-year at the time of writing.
Mike Gill, PEXA Senior Research Manager, said there were a number of factors laying a strong foundation for the property market’s current performance.
“These projections are indicative of settlement activity starting earlier in the year – combined with high sales volumes and clearance rates.”
Property remains the trusted asset
In spite of the challenges faced by industry, traditionally, property has not been as prone to fluctuation as other markets, such as the stock exchange1.
Leah Calnan, President, Real Estate Institute of Victoria believes the Victorian property market has endured COVID-19 and emerged as an appealing option for consumers.
“Certainly, low interest rates, government incentives including stamp duty concessions and first home buyers grants added to buyer appetite for the December quarter, while volatility and uncertainty in the Australian equity market have secured property as a preferred investment option for Victorians.”
Meanwhile, Tim McKibbin, CEO, Real Estate Institute of NSW, predicts the sector will be key to Australia’s overall road to recovery.
“While residential housing has been largely unaffected by COVID-19, the market is poised to play an influential role in the economic recovery.”
While the next few months will be key for the sector, there are certainly encouraging signs across the nation that indicate a positive 2021 is on the cards.
