Payroll figures released by the ABS and ATO this week have shed light on the nation’s fragmented property market.
The new data tracks the total movement in jobs held on payroll since the start of the Covid-19 outbreak (judged as March 14) to the week ending July 11 and shows NSW is down 5.3% overall, while WA was down just 3.1% and Victoria, understandably showed the biggest impact, with a 7.3% decline.
Numbers are also released across industry sectors, which shows wide variations in national performance with Hospitality down 18.1%, Arts and Recreation down 16.3% real estate services off 9.2% to name a few.
Analysis by consulting company AreaSearch apportioned these industry changes to the composition of local areas across the country, and have released a useful video showing the estimated impact around national localities.
On AreaSearch’s estimates the Melbourne CBD appears the hardest hit with with jobs among city residents falling by an estimated 10.8% on their numbers given the high employment weighting to impacted sectors such as Hospitality which recorded a 24.4% fall in Victoria.
AreaSearch’s founder, Chris Freeman, who previously ran research for the Charter Hall Group, said while the analysis is an approximation official figures at a local level will not be available for months and clients nationally have been seeking such analysis to provide some direction in these uncertain times.
“With the market changing so rapidly given the onset of Covid-19 property metrics are becoming outdated at a rate surpassing even the GFC and it is great the Government has taken the initiative to provide new reports such as the payroll jobs data,” Mr Freeman said.
“Moving forward the drivers of market performance will need to be closely, and realistically, assessed and we could see some material performance dislocation between funds that do and do not take a proactive approach to this.”
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