The process of moving during the COVID-19 pandemic has slowed a bit, but experts emphasise that it has not come to a halt. As with the rest of the world, the real estate business landscape is finding ways to adjust to the way properties are being sold or rented.
Notwithstanding this, the level of uncertainty in the economy remains at an all-time high—the trajectory of recovery is difficult to predict. Although there has been no global response as of late, individual countries are taking major steps to cushion the repercussions of the pandemic. There are policy steps and efforts, but the stakes for many industries remain challenging—the real estate in Australia is no different.
In this guide, we take a look into the current situation of real estate, advice from experts, and the future implications of the pandemic.
The real estate market landscape during COVID-19
COVID-19 has affected the real estate sector in many ways—it has helped accelerate some trends, but at the same time, reversed booming trends, particularly in Sydney. Meanwhile, the demand for online shopping, for instance, has increased tremendously and will likely continue. The trend for the densification of living space and work, however, is now under much scrutiny.
What does this mean for your property move?
The government urges homebuyers and renters to delay moving into their new homes while measures are taking place to fight COVID-19, such as social distancing and quarantine.
Should the exchange of contracts have already been made, but the property is still occupied by a tenant, all parties should work together to reach a decision. They must agree on instances of delay or some other way to resolve the matter. Should the move be unavoidable for valid reasons, the process can take place but only under strict protocols to minimise the spread of the virus.
What might a post-coronavirus real estate market look like?
In times of market uncertainty and high unemployment rates, there has been a shift in demand from higher-priced rental properties to lower priced. This has mostly affected high-end suburbs, as many properties now remain vacant and may be for a long time. The demand for low-end properties continues to rise, and it could potentially offset some of the downturn in the rest of the real estate market. As this happens, the median rent rates continue to fall across Australia.
It should be noted, however, that the rental market is slowly improving as a result of federal and state government measures to protect renters and landlords. The search numbers for rental properties fell in the first two weeks of lockdowns, but the numbers are beginning to rise once more. Unfortunately, plenty of areas remain struggling.
The question now is this: how much and for how long can the government and financial institutions cushion the economic impact of the pandemic to both homeowners and investment property owners? Whatever the answer may be, it will be the key driver to the property market’s overall recovery.
The Takeaway
We are in uncharted waters with no end dates. Millions of people are potentially surviving on social security support, and any interest in real estate is seemingly subdued. You may be planning to move now, or perhaps planning to invest in a certain property. Whatever the case, just like with any other sector, the real estate landscape is walking on untested waters—choose your next property wisely!
The best thing to do now is to look for companies who specialise in properties. If you’re looking for experts Buyers’ Agent in Sydney, Australia, we are the best place to call. Find the right property despite the pandemic and buy with confidence—that’s our promise. Reach out to our team now for more information!
