Right up until March, this year was tracking to be a great year for capital growth in most property markets around the country.
There was limited supply in many areas and lots of demand. Things were moving. And then COVID hit.
Since then, things have changed. But not as much as you might think. Yes, both supply and demand have dropped, confidence in the market has dropped and the media seems to be having a feeding frenzy on pessimism. The facts are telling us differently. CoreLogic, Australia’s leading property researcher has just released July figures on property values and whilst they have taken a bit of a hit in the last quarter, they are good for the annual return.
Check out the figures below. Melbourne has reported a 1.2% decline for the month of July and a 3.2% drop for the quarter, but the annual value increase is still 8.7% which is solid growth.
As always, we need to focus on long term returns – not the little blips up or down along the way – and this is the perfect reminder of why that’s so important.
We’ve had recessions before, we’ve had downturns in property values. But every single time, these events have been followed by recoveries. These recoveries have often led to great gains by investors who bought at the right time for the right price in a location with high rental demand.
Let us help you gather enough information so that you can make a great investment decision now.