Brisbane values gained 0.3 per cent, placing it second only to Sydney which saw 0.4 per cent growth according to the latest CoreLogic Home Value Index published on Domain.
Is this an early indicator that prices might hold steady throughout the COVID-19 challenges? Well, no. The data is showing softening in some capital city markets already.
“Although housing values were generally slightly positive over the month, the trend has clearly weakened since mid-to-late March, when social distancing policies were implemented and consumer sentiment started to plummet,” CoreLogic head of research Tim Lawless said.
Thankfully, Brisbane is shielded from some of the major challenges that will likely have some impact on Australia’s property markets.
Sydney and Melbourne were most exposed to drops in overseas migration and their already low rental yields were expected to drop further as rents dropped. Both cities were already facing affordability challenges before COVID-19.
Hobart too was expected to see a greater impact with a significant portion of its workforce employed in accommodation, food services, the arts and recreation sectors, all of which have been hard hit by the social distancing restrictions.
While it remains way too early to know how the pandemic will truly affect property markets Domain senior research analyst Nicola Powell said support measures in place from government and banks will help mitigate any “extreme levels” of distressed selling.
Check out changes in capital city home values for April:
- Sydney 0.4%
- Brisbane 0.3%
- Perth 0.2%
- Canberra 0%
- Hobart -0.1%
- Melbourne -0.3%
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