Latest lockdown could impact real estate resilance: RP Data's Eliza Owen
Auction results across Sydney and Melbourne have remained resilient in lockdown, particularly circuit-breaker lockdowns, a report from CoreLogic advised.
It noted a larger than normal number of auctions are typically withdrawn, postponed or sold prior to the auction event.
And that transaction activity had slowed markedly through lockdown periods.
"However a ‘catch up’ in home purchases has been evident as restrictions ease," CoreLogic head of research for Australia, Eliza Owen, noted.
“It is true that demand takes a hit during lockdowns” she said.
More importantly property values had "remained resilient through lockdown."
Owen added stability of housing market values was likely subject to extensive government stimulus and institutional support for the sector.
Owen added these influences were "far less certain going forward."
Australian housing market values had a peak to trough decline of just -2.1% through 2020, before surging 12.2% through the first six months of 2021.
Owen concluded by noting in the event of another extended lockdown, the future of housing demand and supply becomes much less certain if that same government and institutional support is not there.