Property prices in Australia surge to record highs despite recession

Demand up partly because of Covid-19 leading to people working from home

Bondi Beach in Sydney, Australia. Unusually, prices in Australia's regional areas are rising far more quickly than in major cities such as Sydney and Melbourne. In the past year, regional property prices have risen 7.9 per cent, compared with 1.7 per
Bondi Beach in Sydney, Australia. Unusually, prices in Australia's regional areas are rising far more quickly than in major cities such as Sydney and Melbourne. In the past year, regional property prices have risen 7.9 per cent, compared with 1.7 per cent in the country's capital cities. PHOTO: REUTERS
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Australians discovered this week that not even a pandemic or the country's first recession in almost 30 years can put a dent in the surging housing market, as new figures showed that property prices have reached record highs.

Despite initial warnings from analysts that the Covid-19 outbreak could cause prices to fall by up to 30 per cent, the average dwelling is now worth more than before the pandemic. According to property data firm CoreLogic, average prices rose 0.9 per cent last month and have exceeded their peak in 2017, after which tighter lending controls led to a price dip.

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A version of this article appeared in the print edition of The Straits Times on February 06, 2021, with the headline Property prices in Australia surge to record highs despite recession. Subscribe