House prices show early virus impact

Property prices have had the lowest monthly gain since July as coronavirus restrictions on auctions and open homes hampered sales.

Housing values increased by 0.7 per cent in March, although sales were weaker in the second half of the month as the restrictions took effect, according to CoreLogic.

Values grew by 1.1 per cent in Sydney, 0.4 per cent in Melbourne, 0.6 per cent in Brisbane, 0.3 per cent in Adelaide, 0.5 per cent in Perth and 2.0 per cent in Darwin, while Hobart was down 0.2 per cent.

CoreLogic head of research Tim Lawless said he expected the number of residential property sales to fall dramatically in the coming months.

This was due to the restrictions, as well as tanking consumer confidence, a rising jobless rate and more cautious lending.

However, Mr Lawless expected housing values to be more insulated from the economic fallout than sales activity due to government stimulus and low interest rates.

He also said accurately reporting on the market would be challenging in the months ahead if there were fewer sales to consider. 

AAP

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