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Australians urged to buy property despite predictions of steep price falls during COVID-19 recession

Australians are being urged to buy property during the coronavirus crisis so they don’t miss out when prices recover again.

House prices went backwards again in June even as COVID-19 restrictions were eased, with CoreLogic data showing a 1.3 per cent decline in Melbourne and a 0.9 per cent drop in Sydney.

While Australian property prices quickly recovered from the 2017 downturn, real estate values have historically fallen during recessions.

Between 1989 and 1991, when Australia was last in recession, Sydney’s housing market dived 9.6 per cent from peak to trough during an era when interest rates had surged to 18 per cent, historic CoreLogic data showed.

Australians are being urged to buy property during the coronavirus crisis so they don’t miss out when prices recover again. AMP Capital chief economist Shane Oliver said Australian capital city property prices were set to plunge by five to ten per cent between April 2020 and the middle of next year as the COVID-19 shutdowns caused the deepest economic downturn since the 1930s Great Depression. Pictured are houses at Kellyville in Sydney’s north-west

AMP Capital chief economist Shane Oliver said Australian capital city property prices were set to plunge by five to ten per cent between April 2020 and the middle of next year as the COVID-19 shutdowns caused the deepest economic downturn since the 1930s Great Depression.

‘The recession is deeper, true unemployment is higher and immigration has ground to a halt,’ he told Daily Mail Australia.

Nonetheless Zaki Ameer, the founder of buyer’s agency, Dream Design Property said the coronavirus recession was the perfect time to buy property, before immigration resumed in 2021.

‘With Australia’s population expected to grow to 38million by 2050, the next three to twelve months are likely to be the most affordable for decades,’ he said.

‘I forecast that it won’t be long before we have increased property prices , given the diligent handling of the pandemic in Australia compared to the rest of the world.

‘That will only make Australia an even more attractive country for migrants to want to live.’

Zaki Ameer, the founder of buyer's agency, Dream Design Property said the coronavirus recession was the perfect time to buy property, before immigration resumed in 2021. He recommended investors wanting capital growth buy at Leppington, 40km south-west of central Sydney where a four-bedroom house (like the one pictured) can be bought for $650,000

Zaki Ameer, the founder of buyer’s agency, Dream Design Property said the coronavirus recession was the perfect time to buy property, before immigration resumed in 2021. He recommended investors wanting capital growth buy at Leppington, 40km south-west of central Sydney where a four-bedroom house (like the one pictured) can be bought for $650,000

Sydney 

Mr Ameer recommended investors wanting capital growth buy at Leppington, 40km south-west of central Sydney, where the median price of $718,468 is well below the city-wide mid-point of $1million going by CoreLogic data.

Australian property markets bleed

SYDNEY: down 0.9 per cent to $1,010,426

MELBOURNE: down 1.3 per cent to $802,551

BRISBANE: down 0.4 per cent to $557,265

ADELAIDE: down 0.2 per cent to $476,639

PERTH: down 1.1 per cent to $459,376

HOBART: up 0.4 per cent to $516,600

DARWIN: up 0.4 per cent to $470,136

CANBERRA: up 0.1 per cent to $716,150

Source: CoreLogic Home Value Index for June 2020 of median house prices 

This suburb is less than 20km from the upcoming Western Sydney airport, due to open in 2026, and more than 11,000 jobs have been created during construction.

‘You can purchase a four-bedroom, two-bathroom house here for $650,000,’ he told Daily Mail Australia.

‘Many immigrants of Australia are currently living in Leppington. 

‘When borders re-open, families and friends of these existing immigrants will want to purchase in this same suburb and live in suburbs of similar cultural diversity.’

Melbourne 

Mr Ameer said buyers should also consider Epping, in Melbourne’s north where it is possible to buy a four-bedroom townhouse for $460,000.

‘Epping enjoys excellent connectivity and accessibility from Melbourne CBD, Melbourne Airport and Epping Railway Station,’ he said. 

The suburb is near the proposed Aurora Town railway station, and a planned $1billion medical, retail and medical hub.

‘Epping is a well-established suburb in Melbourne since the 1970s. Surrounding areas have had recent major new property developments,’ Mr Ameer said. 

‘Due to the current COVID-19 related lock downs, developers are heavily discounting property prices to continue with business and to support the construction industry. 

Mr Ameer said buyers should also consider Epping, in Melbourne's north where it is possible to buy a four-bedroom townhouse for $460,000. The one pictured is selling for $495,000 to $539,000

Mr Ameer said buyers should also consider Epping, in Melbourne’s north where it is possible to buy a four-bedroom townhouse for $460,000. The one pictured is selling for $495,000 to $539,000

For those wanting somewhere near the city, Mr Ameer suggested Windsor 2km north of Brisbane where a brand-new apartment can be bought for $370,000. Pictured is an apartment on the market for more than $385,000

 For those wanting somewhere near the city, Mr Ameer suggested Windsor 2km north of Brisbane where a brand-new apartment can be bought for $370,000. Pictured is an apartment on the market for more than $385,000

‘New home buyers can now obtain incredible below-market deals at prices they will never see again.’

Australia’s cheapest home loans

Bank of Us: 1.99 per cent two and three-year fixed rates (only available to existing customers and Tasmanians)

HSBC: 2.09 per cent, two-year fixed

UBank: 2.14 per for fixed one and three years

Source: Canstar 

Brisbane 

For those wanting somewhere near the city, Mr Ameer suggested Windsor 2km north of Brisbane where a brand-new apartment can be bought for $370,000. 

He said rent of $390 a week provided a ‘good positive cash flow’. 

‘Once international students resume, there will be a demand for living in inner city apartments such as Windsor, which also has close proximity to universities,’ he said.

Adelaide 

Adelaide’s north was also considered an attractive place to invest with Mr Ameer recommending Andrews Farm.

A brand-new four-bedroom house can be bought for $350,000 with rental income of $330 a week.

‘Adelaide is extremely attractive to immigrants given its low pricing of property, that is low-cost entry, compared to other states, and the exceptional well handling of the corona virus,’ he said.

Unlike three decades ago, Australian interest rates are at record low of just 0.25 per cent. 

During Australia’s most recent downturn between 2017 and 2019, Sydney’s median house price plunged by a record 17.4 per cent while Melbourne’s equivalent values plummeted by 14.8 per cent. 

A crackdown on investor and interest-only by the Australian Prudential Regulation Authority, the banking regulator, had sparked that downturn after more than five years of strong growth.

Adelaide's north was also considered an attractive place to invest with Mr Ameer recommending Andrews Farm. A brand-new four-bedroom house can be bought for $350,000 with rental income of $330 a week. Pictured is a house on the market for $269,000

Adelaide’s north was also considered an attractive place to invest with Mr Ameer recommending Andrews Farm. A brand-new four-bedroom house can be bought for $350,000 with rental income of $330 a week. Pictured is a house on the market for $269,000

Read more at DailyMail.co.uk