Quick Look at Engage:BDR’s Publisher-First Ad Marketplace, NetZero

  • April 28, 2020 02:29 PM AEST
  • Team Kalkine
Quick Look at Engage:BDR’s Publisher-First Ad Marketplace, NetZero


  • Australian housing prices may top growth of 20 per cent by 2021.
  • Record low interest rates and the government’s stimulus measures have given a boost to the housing sector.
  • Low inventory levels, strengthening auction markets and new record high loan commitments indicate stronger recovery ahead.
Gold MTF non-AMP

While Australia marked a return to growth in the September quarter, the Australian housing market seems to be out of the woods. Housing prices in Australia are on the rise and can surge further going ahead. The housing prices can top growth of 20 per cent next year if the pandemic remains under control, as against the initial forecast of a 10 per cent to 20 per cent decline by property analysts.

The experts are of the view that tightening labour markets along with re-opening of state borders and credit flow are making buyers more confident than they were during the earlier phase of the pandemic.

Owing to measures such as record low interest rates, fiscal support and containment of coronavirus spread, the majority of economic indicators are indicating faster economic recovery. Hence, the housing sector can look forward to brisk recovery.

ALSO READ: Australia shows resilience & defeats property market crash- 3 ASX stocks in discussion

Property Market Rebound

According to the latest CoreLogic data, Australia’s housing market is seeing a rebound. In November, the national house price index increased by 0.8 per cent. Even as the national index is still below levels seen in March, all capital cities saw a rise in property prices.

The national home value index rose yet again in November and settled sales in the previous three months are estimated to be nearly 1 per cent higher than the corresponding period year ago.

INTERESTING READ: How is Australia's property market scenario panning out?

Strengthening auction markets

The number of auctions is on the rise and expected to see a further hike in the first two weeks of December. The clearance rates held above 70 per cent in November, much above the decade average of 61 per cent, according to CoreLogic data.

Even the median selling time has come down to 42 days in November from 57 days in June. Similarly, the discount rates have come down to 2.8 per cent in November from 3.9 per cent in April.

First time home buyers

The number of first-time home buyers rose by 13,481 in the month of October, up 3.4 per cent from September.  According to ABS, it was the biggest jump (30 per cent) as against any pre-COVID-19 month since 2009. Philip Lowe recently stated at a parliamentary committee that it is a good time for first time home buyers to purchase a property of choice.

READ MORE: What will Australia’s housing prices look like in 2021?

New record high loan commitments 

The new loan commitments for housing have also reached a record level. Both the total value of new loan commitments for housing and the value of owner occupier home loan commitments hit record highs in October, according to the ABS data.

The total value of new loan commitments for housing surged 0.7 per cent to $22.7 billion in October (seasonally adjusted). The value of new owner occupier home loan commitments was up 0.8 per cent to $17.4 billion in October 2020, up over 30 per cent higher than October last year.

Record low interest rates

The Reserve Bank of Australia (RBA) has held the official cash rate at a record low of 0.1 per cent. Lower interest rates have partly driven the property demand as buyers have started to look at housing opportunities amid affordable borrowings.

Commenting on the decision to hold rates at a record low, RBA Governor Philip Lowe said that lowering of rates across the yield curve may help in recovery by reduction on finance costs for borrowers and support to the asset prices and balance sheets. 

READ MORE: Residential real estate regains its shine as house approvals hit a 20-year high

Government stimulus

Stimulus in the form of ease in credit lending, such as the HomeBuilder scheme, helped to boost the property sector amid the pandemic. The scheme which provides $25,000 grants to eligible people for building a new home or renovating an existing one has been extended to 31 March 2021. But it has been done at a lower rate of $15,000.

Sharing his view on the move, Australian Prime Minister Scott Morrison said that the extension might result in another 15,000 construction projects, taking the total expected renovations or builds under the program to 42,000.

Even the incentives provided by the State governments such as changes to stamp duty and additional building grants boosted the market sentiments. According to the ABS data, the total value of construction loans surged 10.9 per cent in October, as against the last month. The value has risen 65.6 per cent since July.



The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK