Property Buzz

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How property has changed post-COVID, a top real estate leader has called out the dangers of removing negative gearing, and fewer auctions push up the success rate.

Welcome to Property Buzz! I’m Orana Durney-Benson.

Today is Tuesday, the 12th of March, and new data from CoreLogic has revealed that the COVID-19 pandemic had a significant impact on Australian property.   
– Since March 2020, house values have increased by 37.9 per cent while unit values have increased by just 16.5 per cent, indicating a growing preference for space.
– Solo living is also on the rise, with the average household size in Australia decreasing from 2.55 people in late 2020 to 2.48 people in August 2022.
– Despite initial concerns about the impact of interest rate rises, Australia’s housing market has proved to be resilient over the past 4 years, according to CoreLogic.

Meanwhile, CEO and industry leader Avi Khan has warned that removing negative gearing could accelerate the nation’s housing crisis.
– Khan argued that the tax setting, which allows investors to deduct property investment losses from their taxable income, fosters a culture of investment that benefits the broader economy.  
– In particular, Khan argued that negative gearing has played a significant role in increasing the supply of rental properties in Australia, with private investors providing an additional 1.1 million rental properties between 1996 and 2021.
– He warned that removing or altering this policy could threaten investor confidence and exacerbate an already-dire housing crisis.

And turning to the auction market, last week saw a preliminary clearance rate of 72.8 per cent across Australia’s combined capital cities, a notable improvement from prior weeks.
– Heading the charge was Adelaide, which recorded an impressive preliminary clearance rate of over 83 per cent, the highest of the Australian cities.
– The larger auction markets of Sydney and Melbourne experienced softer outcomes, with Melbourne’s preliminary clearance rate dropping below 70 per cent for the first time this year.
– Next week, 2,400 homes are expected to go under the hammer across the country.

That’s it for today.

See you again tomorrow, the 13th of March, for your daily dose of Property Buzz. 

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How property has changed post-COVID