As last weekend marked one of the busiest Saturdays in the property market, and also the close of February, the Sydney property market continued to showcase strong capital gains with a monthly increase of 1.7%. Auction markets are passing the test of higher volumes with strong results, with volumes reaching similar levels to those seen around the end of last year over the seasonal hype pre slowdown period when clearance rates were tracking around the mid 60% to low 70% range. Despite this rapid recovery Sydney housing values remain 3.7% below the 2017 peak according to Corelogic however, based on the current rate of growth over the last three months the previous peak could be met as early as the end of May. Moving closer to home the Epping market is continuing to enjoy consistently excellent results as more and more home owners are renewing their confidence in taking their property to the market. Taking on the global perspective, share markets have been experiencing significant downturns in the wake of concerns over the Coronavirus which continue to grip investors.
Taking on a local perspective the Epping market has continued to enjoy strong results in 2020, with a number of high valued property transactions occurring within the month of February. Auction clearance rates in the area have also continued to hold around the 80% mark and home owners are beginning to take notice with the number of new listing entering the market increasing each week. Although a number of results are yet to be disclosed the most notable sales to occur during the month of February include 7 Mountain Street and 2 Brucedale Avenue, with both selling under the hammer for $2,912,000 and $2,900,000 respectively.
Conversely, conditions with the world’s stock markets have quickly deteriorated in recent times as concerns over the Coronavirus spread. The decline means the ASX has now gone down over 10% in the last seven trading days. The Australian dollar was at its lowest point in a decade on Monday morning, buying 64.69 US cents. The direct effects on Australia’s property market as of result of the Coronavirus is yet to be felt however, real estate experts have warned there will be short-term pain for apartment developments with exposure to offshore investors, as well as for landlords relying on foreign students to fill vacancies. As containment of the virus remains out of reach for the time being, we will be keeping a close on how things progress.
Of further news, the RBA has now confirmed that the cash rate has now been lowered to a new record at 0.50%. At the previous meeting, RBA governor Philip Lowe said that despite expectations of stronger global growth this year, the recent coronavirus outbreak has become a source of uncertainty. “In the short term, the bushfires and the coronavirus outbreak will temporarily weigh on domestic growth.” He also said that we may expect an extended period of low interest rates. “The Board will continue to monitor developments… It remains prepared to ease monetary policy further if needed,” Lowe said.