Values are looking good in the current property market
A report released by Corelogic has shown that properties on the ‘high’ end of the market have seen an upswing in value in recent months at a remarkable pace.
The high tier, according to the standards measured by CoreLogic, is the top 25% of property values in any given region. As of February, this reference to dwellings valued at around $960,000 or greater for combined capitals, with a typical value in the high tier sitting roughly at $1.2 million.
The low end of the market (bottom 25%) in the capital cities can be characterised by dwelling values sitting under $497,000.
The low end of the market in the capital cities can be characterised by dwelling values sitting under $497,000.
According to CoreLogic:
“Over February, the top 25% of values in the combined capital cities jumped 2.7%. This was up from an increase of 0.5% in January. The high end of the market clearly led growth in values over the month. The middle 50% of dwelling values (the mid-tier) increased 1.5%, and the ‘low’ end of property values (the low tier) increased 1.2%.”
In layman’s terms, property values across the board have strengthened the position of owners, no matter which tier their property would be classified as.
The market has seemingly rebounded strongly after a difficult year in which COVID-19 restrictions saw laws around auctions and inspecting property temporarily change across Australia at various times.
Of the capital cities, the high end of values has led growth across Sydney, Melbourne, Brisbane and Canberra.
Over the course of 2021, the middle and lower value sections of the market may potentially follow the same trend as the high end, though growth rates may not be as impressive.
As values continue to rise in 2021, and current incentives for first home buyers winding down, the year ahead is likely to show lower levels of first home buyer participation then has been previously shown in market.