Media Watch Report
Introduction
Since the outbreak of COVID-19, both South Australians and
New Zealanders went into lockdowns in March 2020. COVID-19 has caused universal
economic crises in people lives. The impact of COVID-19 pandemic closed the
business activities, reduced jobs and significantly impacting on the
residential property sales in the market. Therefore, the topic of this report
will provide some information and data on how COVID-19 is impacting the
Adelaide property market compared to Auckland. However, the proposition of this
topic will focus and discuss how much Covid-19 has impacted house prices and
values.
Residential property prices and values can be determined
by what happens to the socio-economy activities, the population per density in
both suburban areas and numbers of COVID-19 cases; because it can directly
impact the price and values the houses. The house prices often take longer to
reflect what happens in the local or national economy due to the house is not
easy to purchase and sell. The people value to a property as more than just
investments because the residential property is different from one to the
others.
There are several reasons to choose this topic; first, how COVID-19 impacts demand and supply on residential property in the markets. Second, both governments cutting down the interest rate on home loan and leniency the current restrictions will encourage more buyer in the market. Finally, the COVID-19 pandemic has many changes in residential property prices and values because of an increase in unemployment and business insolvency.
Method adopted
In this section, I provide the property information as
well as data since COVID-19 has declared as a pandemic. The media reports will
cover media outlets that were published from the middle of March to October
2020. The media outlets are included: Newspapers, magazines, blogs, CoreLogic,
social media and the internet. The following media outlets are providing
follow:
First, I choose to provide how much will COVID-19 impact
on house prices? It was published over the last six months in March 2020. The
media outlet is squirrel.co.nz
Second, it provided COVID-19 data shows the property
market at a nine-year low over the last five months. The media outlet is
nzherald.co.nz
Third, the information was provided should I buy or sell
a house during the COVID-19 pandemic? was published over a perioded of sixteen
weeks. The media outlet is savings.com.au
Four, I choose provide how is the Auckland property
market travelling? Was reported over a period of five weeks. The media outlet
is adopted by CoreLogic.co.nz
Five, I provide Adelaide property values continue to
climb despite COVID-19 was released in the last three months. The media outlet
is news.com.au
Six, I choose to provide COVID-19 impact on property
market becoming clearer over 8 weeks. The media outlet is CoreLogic.co.nz
Seven, I prefer to provide the Australian housing values
record the fourth month of decline, down 0.4% in August, with trends beginning
to diverge across the cities. This was released in the last six weeks. The
media outlet is CoreLogic.com.au
Media 8. I choose to provide the information of Adelaide
property market proves resilient through COVID-19 was published over five days.
The media outlet is adopted by realesate.com.au
The media reports
In this section will provide at least eight media reports
based on the dates of the media published, and the dates of media viewed by a
reporter are following bellow:
Media 1. How much will COVID-19 impact house prices was
published the end of March 30th 2020, viewed 15th August 2020.
Media 2. Covid-19 coronavirus: REINZ data shows the
property market at nine-year low was released on April 15th 2020, viewed 25
August 2020.
Media 3. Should I buy or sell a house during the COVID-19
pandemic? The report was published May 18 2020, viewed 10 September 2020.
Media 4. How’s Auckland’s property market travelling? Was
reported 31 August 2020, viewed 17th September 2020.
Media 5. Adelaide property values continue to climb
despite COVID-19 was published on June 2 2020, viewed on September 28th 2020.
Media 6. COVID-19 impact on property market becoming
clearer was released on 7th July 2020, viewed on 28 September 2020.
Media 7. Australian Housing Values Record A Fourth Month
of Decline, down 0.4% In August, With Trends Beginning to Diverge Across the
Cities. This was released 1 September 2020, viewed 6 October 2020.
Media 8. Adelaide property market proves resilient
through COVID-19 was published 7th October 2020, viewed 7 October 2020.
Discussion, interpretation and summary of findings
Residential property prices can be determined by what
happens to the socio-economy activities such as, supply and demand,
affordability, population and unemployment. Since COVID-19 both South of
Australia and New Zealand went into lockdowns in March 2020. Adelaide and
Auckland have a slightly similar in term of suburban areas to compares.
However, both have some differences in terms of populations per density and
number of COVID-19 cases. For instance, the population density in Adelaide
suburbs 400 people per square kilometres while in Auckland suburbs 1,210 people
per square kilometre. The number of cases COVID-19 in South Australia were 475
while New Zealand were 226.
The people in the South of Australia went into lockdown
in March 2020, at that time Adelaide residential property sales have declined
by 50 per cent (Brown 2020). Besides that, the majority of the economist has
predicted the average house prices will drop between 10% to 20% nationally in
Australia (Duffy 2020).
Graph 1.
Based on the column chart figure one above show that the dwelling value
of the house price in Adelaide was (- 0.4 per cent), and the median value was
($439,397) at the end of April 2020. However, the median value has increased by
0.4 per cent ($441,184) at the end of May from ($439,397) in April Brown (2020)
suggest Adelaide property market remains in a strong position. This because
people who purchase a house in the market increased at the end of April.
Figure 2.
The index results in figure two above show
that the changes in dwelling values of the market continue to trend lower from
their pre-COVID-19 highs. Based on the macro perspective, the rate decline has
eased over the past two months. The five out of the eight capitals cities have
recorded steady or rising values through the month of August (Harling 2020).
Besides that, there were six of the eight capitals cities in Australia records
rose home values over the month of September in term of increased consumers’
confidence and new listings (Harling 2020).
Graph 3.
The house price index results as at September 30 shows that changes in
dwelling in a month (0.8%), quarter (0.9%) and the medium value ($449,803) in
Adelaide.
In contrast, New Zealanders went into lockdown on 25 March 2020. The
first national house sales data from the Real Estate Institute in New Zealand
(REINZ) capturing the initial lockdown showed a 4.8 or nearly 5 per cent sales
volume drop (Gibson 2020).
Graph 4.
The figure four of the residential statistic shows that the impact of the first six days lockdown due to coronavirus in New Zealand the number of residential properties has sold in March has fallen Gibson (2020) forecast the median days to sell the property was a negative nine (-9) and median house price in Auckland was ($950,000). Graph 5.
According to House Price Index (HPI) for the month of June 2020 published the results of the impact of coronavirus pandemic. Since, the economic shutdown on the property market data values changes by Month or an annual in Auckland was shown on the figure (5) above. Property values change the month of June negative (- 0.3 per cent), annual (5.4 per cent) and the average value ($1,082,541). However, the House Price Index (HPI) for the month of August has found that the property values were still feeling the effects of the coronavirus pandemic, slightly down with values of the negative (-0.2 per cent) over the month as nationwide. In Auckland, for instance, the downward trend was more noticeable, with values dropping (-1.2 per cent) over the three months Goodall (2020) suggests the social restrictions which have an impact on the rural economy and subsequently on the property market.
Graph 6.
In summary, the houses prices and values in Adelaide South of Australia has decreased significantly at least in a month, but then it was increased at the end of April to current. On the other hand, the residential prices and values in Auckland were significantly declined in March, and it was slowly increased steadily from June to September 2020.
A discussion addressing the proposition
In this section,
I will discuss the summary of findings of how much COVID-19 impacts on the
house price and value in Adelaide South of Australia compared to Auckland in
New Zealand. The real estate institutions, property valuers, the economist’s
other experts provide the data and information what happens in the property
market due to the impacts of COVID-19 pandemic.
First, demand and
supply factors people can decide whether they purchase or sell the house on the
market. Such as, since South Australians went into lockdown Adelaide
residential property sales have significantly declined by 50 per cent in March
(Brown 2020). For example, when the price of property falls, the quantity
demanded of the house will increase and supply fall. Therefore, it is important
to know the property date and information before buying or selling property on
market.
Furthermore, the
data on figure one (1) above saw that the property changes in dwelling values
in a month (-0.4%) and the median value was ($439,397) in April 2020. The same
as first six days of New Zealanders went into lockdown in March 2020, there was
4.8 or nearly five per cent dropped. Based on the residential statistic in graph
(5) above seen that the median days to sell the property was a negative nine
(-9) (Gibson 2020). By the comparison, both house price and value in a month
have decreased since both went into lockdown. On the other hand, the median
value has simply risen 0.4% ($441,184) at the end of May Brown (2020) suggest
Adelaide property market remains in a strong position. That was because the
strong buyers inquired and lack of the stock and they are purchasing for a
considered price for the property.
Second, the
COVID-19 pandemic has an increase in the level of unemployment and the business
insolvency. Since people lost their jobs and the closure the business the
experts predicted that more people will likely to decide they cannot afford to
resume repayments and may put their houses up for sale (Yeates 2020). However,
there was financial support from the government and banks for people has an
impact by the covid-19 pandemic. For example, the banks have allowed one in 10
mortgage customers not to make repayments for up to six months, without any
blemish to their credit records (Yeates 2020). Furthermore, the businesses have
also had a reprieve from insolvency laws, and many have received wage subsidies
Yeates (2020) which have likely delayed a wave of company collapses.
In contrast, the
landlords have been impacted by COVID-19 in Auckland will have up to six-month
mortgage repayment holiday Bolton (2020) this mean minimal forced sales over
the next six months. Mortgage repayment holidays will give the property market
time to adjust to a post-COVID-19 world. However, in Auckland, most of the
unemployment was relatively unskilled and minimum wage service jobs, held by
people who were not property owners.
Third, so far
Adelaide property market has proved to be resilient through the COVID-19
pandemic, profitability of homes sales rise in the three months to June; Core
Logic’s latest Pain and Gain report show the city’s portion of properties that
sold at a loss dropped 0.7% in the June quarter, based on 3549 resales compared
in March quarter has slightly changed 4037 resales (Brown 2020).
Furthermore, the
report said, Adelaide was the only capital city to record a decline in the
portion of loss-making sales. This can be seen that the proportion of resales
profit-making in Adelaide increased with 9.2 per cent of properties. It was a
reversal of the trend seen in the March quarter, where loss-making sales had
trended up to 9.9 per cent of resales (Brown 2020).
On the other
hand, from the residential statistic graph (4) seen that pre-lockdown the
median houses price in Auckland was significantly increased by $950,000 from
$900,000. After the median house value falls in March, due to challenges of
Covid-19 pandemic the property values in June to August in Auckland has
continued to track steadily the values have been generally increased as well,
and first home buyers and mortgaged investors are still active (Davidson 2020).
Conclusion
The house prices
can be determined by supply and demand, affordability, population and
unemployment. The COVID-19 pandemic has a significant impact on people in
Adelaide and Auckland suburbs. The Covid-19 has some positive and negative
impact for both buyers and seller of the properties. Some of the positive
impacts were for both were cutting down the interest rate, government-imposed
subsidies. However, the impact of this pandemic was closure business as result
people lost the jobs so on.
The houses prices and values in Adelaide South of Australia has decreased significantly at least in a month, but then it was increased at the end of April until today. On the other hand, the residential prices and values in Auckland were significantly declined in March, and it was slowly increased steadily from June to September 2020. However, it was still holding a negative median value of the house price. In short, Covid-19 impacts falls in house prices and values in Adelaide so far this year have been relatively modest compare to New Zealand.
References
Bolton, J 2020, ‘How much will COVID-19 impact house
prices?’, Squirrel, 30 March, viewed
25 August 2020, <https://www.squirrel.co.nz/blogs/housing-market/how-much-will-covid-19-impact-house-prices>.
Brown, J 2020, ‘Adelaide property values continue to
climb despite COVID-19’, News, 2
June, viewed 28 September 2020,<https://www.news.com.au/finance/real-estate/adelaide-property-values-continue-to-climb-despite-covid19/news-story/ed9ec5d0e88cee4a2a88df0dd2b6f9a3>.
Brown, J 2020, ‘Adelaide property market proves
resilient through COVID-19’, Realestate, 7
October, viewed 8 October 2020,<https://www.realestate.com.au/news/adelaide-the-only-capital-city-to-record-a-drop-in-the-portion-of-loss-making-resales/>.
Duffy, E 2020, ‘Should I buy or sell a house during
the COVID-19 pandemic?’, Savings,18
May, viewed 10 September 2020,<https://www.savings.com.au/home-loans/should-i-buy-or-sell-a-house-during-the-covid-19-pandemic>.
Davidson, K 2020, ‘How’s Auckland’s property market
travelling?’, CoreLogic, 2 October,
viewed 4 October 2020,<https://www.corelogic.co.nz/news/hows-aucklands-property-market-travelling#.X4LwhdBLiUk>.
Gibson, A 2020,’Covid 19 coronavirus: REINZ data
shows property market at nine-year low’, Nzherald,
15 April, viewed 25 August 2020, <https://www.nzherald.co.nz/business/covid-19-coronavirus-reinz-data-shows-property-market-at-nine-year-low/STQY6GVL6NAHVDQ7LY4ZWR3F5Y/>.
Goodall, N 2020,‘COVID-19 impact on property market
becoming clearer’, CoreLogic, 7 July,
viewed 28 September 2020,<https://www.corelogic.co.nz/news/covid-19-impact-property-market-becoming-clearer#.X4KgbtBLiUm>.
Goodall, N 2020, ‘CoreLogic House Price Index finds
property values stuck between a rock and a hard place’, CoreLogic, 31 August, viewed 7 October 2020, <https://www.corelogic.co.nz/news/corelogic-house-price-index-aug-2020#.X4KgkdBLiUm>.
Harling, J 2020, ‘Australian Housing Values Record A
Fourth Month Of Decline, Down 0.4% In August, With Trends Beginning To Diverge
Across The Cities’, CoreLogic, 1
September, viewed 3 October 2020,<https://www.corelogic.com.au/news/australian-housing-values-record-fourth-month-decline-down-04-august-trends-beginning-diverge>.
Harling, J 2020, ‘Lower home values in Melbourne and
Sydney continue to weigh down the national housing market while the remaining
capitals record a lift through September’, CoreLogic,
1 October, viewed 6 October 2020,
<https://www.corelogic.com.au/news/corelogic-hedonic-home-value-index-october-2020>.
Yeates, C 2020, ‘House prices prove resilient but
will it last?’, The Sydney Morning Herald, 1 September, viewed 05
October 2020,<https://www.smh.com.au/money/investing/house-prices-prove-resilient-but-will-it-last-20200828-p55qdl.html>.
Comments
Post a Comment