Australia ranks among top 20 in the world for house price growth

Despite the damages caused by the outbreak, the Land Down Under still managed to snag a spot

As the rest of the world deal with the declining state of the property market, Australia has managed to somehow recover despite the pandemic, reporting a 6.1 percent house price growth in the past 12 months to June 2020. 

According to the global index’s second-quarter analysis by Knight Frank, this improvement has earned them the 19th out of 20 spots, surpassing 29 other countries and territories around the world. 

In June last year, the country witnessed a whopping negative 7.4 percent growth, which pushed them back to the last place. Fortunately in the March quarter of this year, the booming housing market in Sydney and Melbourne boosted the country’s rankings, placing them at the 10th spot in the world. 

Shortly after, between April and June, the price growth declined again by two percent because of lockdown restrictions, which is why they landed at the 19th spot by the end of the June quarter. 

Michelle Ciesielski, the head of residential research Australia at Knight Frank told Domain that the ranking will drop further since Melbourne remains closed during the normally busy spring auction season.

More: Prices for luxury residences in Australia soar, undeterred by global outbreak

Even though the outbreak has made it difficult for Knight Frank to collect data, having received only 29 results out of 56 countries, Michelle shared that “the data still offers a glimpse into the impact of COVID-19, with a number of countries and territories seeing a decline in prices increasing again.” 

Despite falling to the 19th spot, she added that Australia managed to do well as opposed to other countries since the lockdowns imposed during the second quarter weren’t as long or as severe. 

“It can also be attributable to the state of the housing market prior to the pandemic, with Australia’s market strong heading into 2020 with demand high and stock levels low,” she said. “This could hold the Australian market in good stead for a recovery next year when all capital cities were out of lockdown and open borders.” 

Australia’s housing market may have not remained stable throughout the past 12 months, but it did remain as resilient as ever. This positive outlook on the housing market has enabled the distinguished winners of the 2019 PropertyGuru Asia Property Awards (Australia), namely UEM Sunrise, Weston Property Developments and Fife Capital Group to rise above the damages inflicted by the pandemic and look forward to what’s to come. 

Winners of the PropertyGuru Asia Property Awards (Australia) will be announced on 4 December 2020. To find out which developers or projects will receive prestigious distinctions, visit asiapropertyawards.com/en/award/asia-property-awards-australia/.