New Residential sales leads the market at end of 2020

Some Big figures in New Home Sales figures came out last week from HIA.

New home sales accelerated in Dec20, nearly doubling that of the previous month, +92% m-m to 13,527. New South Wales and Victoria all recorded growth in excess of 100% m-m. .The December spike is likely due to Homebuilder $25k grant ending on 31 Dec-20, before lowering to $15k to 31 Mar-21. It is expected that these numbers will decline once the grant ends. Overall, new home sales in 2020 increased by 32.5% on the year before. 

This was the second strongest pace of growth in the 20 years of the survey. 

 Also, low-interest rates, house price growth, and a change in consumer preferences away from apartment-style living have all seen demand for detached housing rise. 

It is expected that the confidence levels will also return to other sectors.

The Industrial market is showing strong results in late 2020 with some strong sales results in the last quarter of 2020 in metro Sydney. It has been noticed that Sydney West has seen some strong interest even through the Covid period. It is expected that this will continue into 2021

Interest levels in the Commercial market is showing increased level of enquiry but it did have a slow end to 2020 with regards to sales in Sydney metro .

It has also been noticed that a lot of office tenants have returned to the office . Private sector lead the return in late 2020 with the Government return in early 2021.

Based on years of research by Harvard Business review and experience thus far, there are four broad areas in management development — collaboration, innovation, acculturation and dedication — that may prove difficult to achieve and sustain without some face-to-face interaction in the future.

This should see tenants return to the office and help the Commercial sector in strengthening tenancy covenants.