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The winners and losers of property post-COVID recession

This year marked a mild property downturn due to the coronavirus-led recession, but looking ahead 2021 is shaping up to be a positive year for property with a sharp recovery on the horizon.

Australia is now out of recession and the property market is bouncing back, particularly in Melbourne after months of lockdown. While the real estate industry is moving cautiously as the country awaits the arrival of a COVID-19 vaccine, there is a positive feeling in the air.

Now that we are (hopefully) through the worst of the pandemic, we can clearly see how the property market has been impacted over the past year. These are the winners and losers of property post-COVID recession.

Winners

Despite some initial predictions of 30% price declines, across most of Australia property prices didn't fall at all during the pandemic. Where they did fall, the declines were very mild. Right now, 80% of capital city suburbs are now recording house price increases, while in Sydney 95% of suburbs are seeing price jumps. For some cities and regions, COVID-19 actually meant even better conditions.

  • Perth, Canberra, SEQ and Northern NSW
  • Prestige property
  • Big homes on big blocks

Losers

Stay-at-home orders and fewer international students, particularly in Melbourne and Sydney, emptied our CBDs during the pandemic. Office, residential and retail properties all saw an increase in vacancies. Australians are now returning to the office but we still have some time before foreign students are able to come back. In 2021, there will be a strong focus from all level of governments on getting people back into the city.

It wasn't a great time to own an apartment close to a university in 2020

by Justin B. 

It has been some time since we saw strong investor activity in the property market. In 2020, problems in many rental markets as well as concerns about the potential for price declines meant that investor activity remained low. Towards the end of the year, enquiry from investors on realestate.com.au began to climb, however activity still remains low in our biggest cities, Melbourne and Sydney.

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Wednesday, 23 June 2021

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