Australia’s housing market increased in value in 2020, despite the drag on activity caused by the outbreak of coronavirus.
The national home value index rose 3 per cent over the year to a median price of $574,872, according to CoreLogic.
Values in regional areas led the way with a 6.9 per cent increase for a combined median of $420,502, compared to 2 per cent for major capital cities with a combined median of $651,983.
Perth property prices climbed 1.9 per cent over the year.
Melbourne was the only capital city to finish the year underwater — albeit on a relatively healthy median price of $682,197 — after battling two waves of outbreaks of COVID-19.
The most expensive city was Sydney, with a median value of $871,749, and the cheapest was Darwin on $416,183.
CoreLogic research director Tim Lawless said record low borrowing rates supported the market in 2020, along with a “spectacular” rise in consumer confidence.
Confidence was buoyed in the latter months of the year as COVID-related restrictions and border constraints began to be lifted.
“Containing the spread of the virus has been critical to Australia’s economic and housing market resilience,” Mr Lawless said on Monday.
The ability to work remotely also boosted property markets outside the big cities. Home prices in regional areas jumped 6.9 per cent in 2020 — more than three times the increase in capital city prices.
“As remote-working opportunities became more prevalent and demand for lifestyle properties became more popular, regional areas of Australia saw housing market conditions surge,” Mr Lawless said.
“Regional housing markets had generally underperformed relative to the capital city regions over the past decade, but 2020 saw regional housing values surge as demand outweighed supply.”
CHANGES IN CAPITAL CITY HOME VALUES IN 2020
- Perth — 1.9pc
- Sydney — 2.7pc
- Melbourne — down 1.3pc
- Brisbane —3.6pc
- Adelaide — 5.9pc
- Hobart — 6.1pc
- Darwin — 9pc
- Canberra — 7.5pc