ASX property shares are higher today after a report shows that Australian property prices rose again in November.
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The ASX 200 Real Estate Sector Index (ASX: XRE) has risen by more than 0.9% today. This comes after a CoreLogic report released today shows that Australian property prices rose for the second consecutive month in November, rising overall by 0.8%.
The report says that regional Australia has driven this growth, with regional home values rising on average by 1.4% — double that of the capital cities.
Here’s what moved the ASX property shares today
CoreLogic publishes daily and monthly residential value indices, including summary monthly movement data. Today’s release provided a strong boost to the property sector, which has seen a 2.1% drop in home values between April and September as a result of the construction slump caused by the COVID-19 pandemic.
The report says that across all the capital cities, Canberra and Hobart led the pack with prices increasing 1.9% and 1.4%, respectively, in November. Adelaide saw a 1.3% growth, while Perth grew by 1.1%. Australia’s three biggest cities, Sydney, Melbourne and Brisbane, saw more modest growths of 0.4%, 0.7%, and 0.6%, respectively.
Regional Australia saw the biggest growth in property prices during November of 1.4%, with regional Queensland posting a 3,2% lift, followed by regional NSW where values are up 3.1%. The trend towards regional areas is consistent with people’s living preferences away from heavily populated metropolitan areas after the pandemic struck.
Corelogic’s head of research, Tim Lawless, provided more optimism to the data, saying:
The national home value index is still seven tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace we could see a recovery from the COVID downturn as early as January or February next year.
I’d be surprised if the growth rate started to falter between now and then.
ASX property shares reacted positively to the report
The release of today’s report has breathed some life into most of the ASX property shares today.
Australia’s biggest property company, Goodman Group (ASX: GMG), has risen by more than 2% to $19.06 at the time of writing. The Charter Hall Group (ASX: CHC) share price also reacted positively to the report, and is currently trading higher by 3.24% to $14.18. Meanwhile the Lendlease Group (ASX: LLC) share price is up more modestly by 0.64% to $14.25.
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