Coronavirus real estate: Geelong values rise in April despite drop on sales, new listings
What’s the outlook for Geelong property prices as coronavirus and social distancing measures cause huge drop in buyers, sellers.
Geelong house prices defied coronavirus and social distancing measures on the property market that’s caused activity to plummet.
Geelong values rose 1.4 per cent in April, the latest CoreLogic Home Value Index shows.
The median dwelling value has increased 5.5 per cent over 12 months to $594,100.
House values rose 1.4 per cent to $629,000, while units were up 1.1 per cent to almost $445,000.
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The performance outstrips the national result and contrasts Melbourne, where values fell 0.3 per cent last month.
CoreLogic head of Australian research Eliza Owen said Geelong’s relatively strong performance was partly cyclic.
The worst declines were in Melbourne’s most expensive areas, which usually lead a decline, while regional areas further from the city will follow after a lag, Ms Owen said.
But Ms Owen said Geelong was less exposed to overseas migration to prop up buyer demand and to the sectors hardest hit by the lockdowns, like food and accommodation, arts and recreation, although there are signs of weakening rental demand.
“Geelong will not be untouched. There is already a decline in the growth in rental prices and rental listings have increased 6 per cent,” Ms Owen said.
“Property values are holding pretty stable, we are not expecting dramatic declines in value.”
CoreLogic estimated a 40 per cent decline in national sales activity over April, while real estate agents using the data analysts’ platform to prepare for listings presentations dropped 60 per cent, a sign that many sellers stopped putting up their homes.
Realestate.com.au data shows Geelong new listings dropped 20 per cent from March to April, while sales were also are down, with 169 properties reported sold until April 28.
Harcourts, North Geelong agent Joe Grgic said inquiry and private inspections had increased.
Mr Grgic said he had six inspections booked for a single property on Saturday.
“The first weekend of lockdown was busy, then it tapered off until we were locked out over Easter. Since that weekend things have become progressively busier,” he said.
Mr Grgic said there was no sign that distressed properties were coming onto the market.
“Volumes have dropped but prices have held because there is no pressure from the banks at the moment,” he said.
“You ring the bank and they’ll give you a deferral. It’s pretty straight forward when the Prime Minister gives that instruction, so there is no distressed selling.”
Hayeswinckle, Highton agent Michelle Winkle said with less competition for buyers, it was a good time to sell.
“If everybody waits until this is over, we are going to have a flood of supply and there is no guarantee you’re going to have the same demand,” she said.
Ms Winckle said some properties were selling within 24 hours.
First-home buyers, armed with stamp duty exemptions and government loan guarantees, remained active in suburbs like Grovedale, while investors remained on the lookout for a bargain, the agents said.
Originally published as Coronavirus real estate: Geelong values rise in April despite drop on sales, new listings