The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
3
print
Print
ResidentialDinah Lewis BoucherMon 10 Feb 20

2020 Property Market Recovery ‘Fastest Ever’: Corelogic

3e86db37-4e58-4c63-b9a8-da94411d0bb3

Australia’s housing market looks set to make a full recovery by April after reaching its bottom last year, with the latest market research showing owner-occupiers lead the charge.

National dwelling values bottomed out 8.4 per cent below their peak in June 2019, with the market since recovering 6.7 per cent.

While most recovery periods match the length of time it takes to go from peak to trough, Corelogic head of residential research Eliza Owen says Australia’s residential market would make a full nominal recovery by April, if growth rates continue at the January trajectory of 0.9 per cent growth per month.

“Marking a 10-month recovery period since values found a floor last June,” Owen said.

“With record-high values expected across Australian dwellings in a few months’ time, 2020 will see the fastest market recovery on record with respect to the length of the downswing.”

Clearance rates soar in strong start to year

Capital city auction activity ramped up with 1,122 homes taken to auction over the weekend, a number expected to further rise in the coming weeks, and almost double the amount of last week’s 625 auctions held.

Sydney was home to the busiest auction market with 428 auctions. The harbour city returned a preliminary auction clearance rate of 79.9 per cent, the highest preliminary result across the capital cities.

Melbourne was home to 401 auctions, with preliminary figures showing a 74 per cent success rate.

Canberra was the second highest preliminary clearance rate across the capital cities, at 77.8 per cent.

While in Brisbane only 36.4 per cent of homes sold at auction.

▲ Owen says the table shows the number of months taken to get from peak to trough, and from trough to recovery throughout past cycles.


Owner-occupiers lead the charge

Following three rate cuts in 2019, the central bank has maintained the cash rate at the record low of 0.75 per cent since October.

Housing finance data from the Australian Bureau of Statistics shows more activity from first home buyers, upgraders, and down-sizers leading the recovery.

“During the previous upswing from 2012-2017, the portion of new housing finance to owner occupiers, excluding refinancing, averaged 59.4 per cent based on the value of commitments,” Owens said.

Owen says this has risen to 71.4 per cent over the past seven months.

“It is worth noting that data on the latter is covering a relatively short period of time, and investor participation may increase over 2020,” Owens said.

ResidentialAustraliaBrisbaneMelbournePerthAdelaideCanberrado not useReal EstateSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
A Singapore-based company is believed to be the new owner, paying $68 million for the former Crown Group holding…
LATEST
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
4 Min
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
3 Min
Singapore’s Furama Hotels reportedly picked up the Skye Suites for $68 million amidst an Australian acquisition spree.
Hotel

Sale of Sydney’s Sky Suites Year’s Biggest Hotel Deal

Renee McKeown
3 Min
RCQ plan to convert 126-140 Bulcock Street, Caloundra into a 13-storey complex with ground floor retail according to the plans submitted to Sunshine Coast Council.
Residential

RCQ Files Triple-Tower Scheme for Caloundra Main Strip

Renee McKeown
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/2020-property-market-recovery-fastest-ever-corelogic