Lockdowns and property prices

A total of forty-six per cent of respondents to a recent survey believe recent lockdowns will push property prices higher, with twenty-tree per cent indicating their belief that regional property in particular is set for a boost.

The survey, conducted by financial comparison website Canstar, polled 1024 Australians on their biggest financial stresses and investment opinions.

It was conducted in the week commencing 26 July, as Victoria prepared to emerge from its fifth lockdown and Sydney confirmed the extension of its lockdown.

In response to the question of what is the biggest impact that lockdowns will have on the property market in Australia, 23 per cent of respondents indicated a lack of stock would push prices up while another 23 per cent said regional property prices would rise as a result of work-from-home policies and the desire for less density.

Meanwhile 13 per cent of respondents said that the lockdowns would have no impact on prices, as property prices always went up, while 11 per cent predicted lockdowns would slow market activity.

“When asked what the biggest impact lockdowns will have on the property market in Australia, rising property prices caused by a limited supply of houses and units coming onto the market and increased demand for regional areas topped the list,” Canstar’s Group Executive, Financial Services, Steve Mickenbecker said.

“With remote working and the safety of low density living, almost a quarter of Australians expect ‘escape to the country’ and regional centres to become an entrenched trend, increasing demand for property there.”

The latest figures from data firm CoreLogic indicate that dwelling prices in regional Australia have risen by 19.6 per cent in the year to July 2021, higher than the 15.1 per cent recorded across the combined capital cities.

The majority of respondents to the Canstar survey indicated that property was still the best investment in Australia, with 41 per cent nominating houses as the best asset type and 10 per cent nominating units.

Eighteen per cent of respondents said that there were better investments outside of the property market, while 31 per cent said they did not know.

The survey also polled respondents on their biggest financial worries, with 23 per cent citing inflation and the rising cost-of-living as their biggest concern.

Rising property prices were the fourth biggest concern, nominated by 13 per cent of respondents.

Seven per cent of people cited a future fall in property prices or a rise in interest rates as their biggest concern.

– BY REALESTATEVIEW.COM.AU