[NEW VIDEO]: So where is the 40% Australian property crash that I was promised in 2020? – By Konrad Bobilak

by | Feb 22, 2021 | property

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Dear Fellow Property Investor,

Despite predictions that COVID-19 would lead to a property market collapse, house and unit prices in Melbourne hit record highs in December 2020.

Domain data reveals the median house price in Melbourne is now an eye-watering $936,073, up by 5.3 per cent in the final three months of 2020.

Median prices for units rose by 4.4 per cent over the same period, to reach a record-high of $569,677.

The best performing region was the Melbourne’s outer-east, where prices skyrocketed by 9.5 per cent over the 2020 last quarter.

Australia’s “ferocious” property market is forecast to soar by up to 10 per cent this year, following new data that shows house prices and new loan commitments have hit record highs.

NAB group chief economist Alan Oster told Domain he expected an increase in property prices of 10 per cent in most capitals, excluding Sydney and Melbourne, which would rise between 7 per cent and 7.5 per cent.

Commonwealth Bank head of Australian economics Gareth Aird has predicted a 9 per cent rise in house prices and 5 per cent for units.

ABS figures released Monday revealed owner-occupier loan commitments in Australia rose by a record 8.7 per cent, or $19.9 billion, fuelled in part by people taking advantage of low interest rates and Homebuilder grants.

And, despite the pandemic, job losses and economic uncertainty, owner-occupier loan commitments rose by a massive 38.9 per cent last year, in the 12 months from December 2019 to December 2020.

“There’s a lot of evidence showing the housing market is strong and today’s pricing data which show house prices are up in January fits in with the lending data and are suggesting house prices will keep rising in 2021,” CBA’s Gareth Aird said.

It’s a stunning turnaround from forecasts made in the early days of the COVID-19 pandemic, when it was thought property prices could fall anywhere from 10 per cent to 30 per cent.

Instead, Australia’s housing market has made a rapid recovery, with CoreLogic’s latest index of dwelling values finding home values rose to a record high in January, up 0.9 per cent.

The figures come off the back of last week’s Domain House Price Report that revealed the national median house prices rose 4.1 per cent to $852,940 in the December quarter, the steepest quarterly jump in four years.

House prices in most capital cities finished the year at record levels, with Sydney’s median now at $1,211,488, Melbourne’s at $936,073, Canberra’s at $855,530 and Brisbane’s at $738,000.

Looking back at the Melbourne property market many savvy property investors will identify correctly that 2019 was one of the best years to get into the market in the last 10 years.

So if you have been sitting on the sidelines watching other property investors around you going from strength to strength then you need to get yourself market ready, get a good team of experts around and take advantage of the prevailing circumstances!