Welcome to 2021!
The team at ASCF trust that you had a wonderful Christmas and a Happy New Year and were able to spend time with loved ones after what was a challenging year for all.
Whilst 2020 brought uncertainty to both the equities and property markets with some pundits predicting falls in property prices of over 20%, the CoreLogic property index results as at the 31st December 2020 showed a vastly different result.
Dwelling prices across all eight capital cities recorded growth on both a monthly and quarterly basis, with all capital cities except Melbourne also recording annual growth.
The combined capital cities saw an increase of 2% for the year, with regional increasing by 6.9%.
Furthermore, Westpac have recently announced that they anticipate that property prices will continue to increase, with a growth rate of 15% from now until 2023.
Auction clearance rates have also continued to recover in the post-lockdown environment with the December quarter recording a 44.1% increase to auction volumes, with 20,489 properties across the combined capital cities going to auction – a significant increase over the 14,216 auctioned during the September quarter. Furthermore, the December quarter also recorded the largest clearance rate of the year at 69.4%.
Our loan originations remain strong with record loan enquiries through both our broker networks and our online loan origination portal as borrowers seek to make the most of opportunities that are presenting themselves in the current market.
The Unit Price across all three funds remains unchanged at $1.00 per unit and the average weighted LVR across the funds remains low.
This article appeared in our January 2021 Investor Newsletter – download the full newsletter here.
