November Market Update
NATIONAL PROPERTY MARKET UPDATE
Australia’s housing market continued along a recovery trend through November.
The national home value index recorded a second consecutive monthly rise in November, with dwelling values up 0.8% over the month.
House and unit value performance has shown more divergence in recent months with combined capital city housing rising by 1.1%, however unit values fell by -0.6%.
Regional areas of Australia continued to perform strongly in November with a monthly growth rate double that of the combined capitals.
The number of properties advertised for sale remains 20% lower than this time last year, favouring sellers over buyers.
Auction markets have strengthened with clearance rates at 70%.
The Commonwealth Government has decided to extend and partially redesign the HomeBuilder initiative to ensure housing construction remains a central pillar of Australia’s economic recovery from COVID-19.
Source: Matusik- Property Clock November 2020
BRISBANE PROPERTY MARKET
Brisbane is currently in the recovery phase of the property cycle.
Property values rose by 0.6% in November.
Housing saw an increased change in rents with 1.2% growth, though units fell by 1.9% over November.
Auction clearance rate for November was 63.5%.
The value of new housing finance commitments in Queensland across Q3 accounted for 31% of the national uplift that quarter.
Brisbane and regional Queensland continue to gain internal migrants.
ECONOMIC OUTLOOK
RBA has kept cash rate at the historic low of 0.1%.
Queensland’s unemployment rate remains at 7.7%.
As of 1 December 2020, Queensland borders are open to all of New South Wales and Victoria as there are no declared COVID-19 hotspots in these states.
The initial market reaction to US President-elect Joe Biden’s White House win has been overwhelmingly positive, with US stock recording the largest ever post-election day gains. This as well as progress in the development of COVID-19 vaccines, has given a boost to the local share market in November.